The company does not expect the steel market to recover after the summer
Tata Steel Nederland, the Dutch arm of global steel company Tata Steel, is cutting costs to cope with the current deterioration in market conditions. It is stated in the company’s message.
As Tata Steel Nederland noted, there is a significant overcapacity in the European market. Steel prices are low, and customers are taking a wait-and-see attitude. In addition, the auto industry is under pressure, which directly affects the steel producer.
«The deterioration of the situation on the market is partly caused by the import of steel from China at low prices. The competitive position is also under pressure due to the high costs incurred by Tata Steel in the Netherlands, such as the high cost of network charges, energy costs and the additional Dutch tax on CO2 emissions,» the statement said.
The company does not expect the steel market to recover after the summer. To cope with deteriorating market conditions and continue its green transition, Tata Steel is taking cost-cutting measures, including in procurement, sales and inventory management. The company also implements a partial freeze on vacancies and significantly reduces training and travel expenses.
At the same time, Tata Steel Nederland continues to continuously produce steel to be able to supply products directly to customers when the market recovers.
The green transition and investments in it also remain on the agenda. Tata Steel continues to work with all stakeholders to create a steel company with a focus on reducing environmental impact. As noted, negotiations are ongoing with the government to conclude an agreement to support decarbonization measures.
As reported earlier, the Italian producer of stainless steel Arvedi AST announced plans to stop one of the two electric arc furnaces at the plant in Terni for about a week at the end of September. The company cited high electricity costs as the reason for the decision, which does not allow it to compete with growing imports from Asia at lower prices.
Read more: Mexico has completed a review of anti-dumping duties on pipe imports from four countries
Vietnam Steel by Hoa Sen Group
