Tata Steel to Explore Alternative Markets for Steelmaking Raw Materials

SEATTLE (Scrap Monster): Leading steelmaker Tata Steel announced that it is seeking alternative sources for coal supply to its European and Indian steelmaking operations. This follows the difficulties in procuring the raw materials from Russia, following the country’s invasion of Ukraine. The invasion had resulted in fears of supply disruptions and higher costs for various commodities including coal and iron ore.

According to T.V. Narendran, Managing Director, Tata Steel the transactions with Russian suppliers and bankers are facing lot of uncertainties. It must be noted that almost 15% of total coal imports by the company were sourced from Russia. The supply for European operations will mainly come from North American countries.

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The crisis in Eastern Europe will open up export opportunities for Indian steel makers, including Tata Steel, mainly to countries such as Turkey and Europe. Tata Steel’s Indian business aims to export around 10%-15% of its total sales in the next financial year starting April 2022, Narendran added.

The recent price hikes are expected to result in significant improvement in the company’s margins in the immediate future. The company plans to have further price hikes, to match with rising input costs.