- Tata Steel expects steel realisations to rise by around £53 ($72) per tonne in the April-June quarter.
- The company said its UK business could return to profitability during FY27 with government support and operational changes.
- Strong domestic demand, cost pressures and recovering Chinese steel prices are pushing steel prices higher, the company said.
Tata Steel is turning more optimistic about the global steel market after months of price volatility, with the company expecting stronger profitability in the current quarter as steel prices recover and demand in India stays firm.
The steelmaker also expects its struggling UK operations to move back into positive territory during the 2026-27 financial year, helped by support measures from the UK government and internal restructuring efforts.
Speaking after the company’s January-March quarter FY26 earnings, chief executive and managing director T. V. Narendran reportedly said steel prices had rebounded from the lows seen late last year and were likely to remain elevated due to a mix of strong domestic demand, rising industry costs and improving Chinese steel prices.
Tata Steel expects realisations in the April-June 2026 quarter to be around ₹6,000 per tonne higher sequentially, equivalent to roughly £53 ($72) per tonne.
Steel prices climb back from lows
The company said the steel market has shifted noticeably compared with the October-December quarter, when prices had weakened sharply.
Narendran reportedly said Indian steel demand has remained resilient even as producers continue dealing with rising input and operational costs. He also pointed to a recovery in Chinese steel prices, which have crossed $500 per tonne again following export restrictions and cost pressures in China.
According to the company, steel prices in India have now moved closer to ₹57,000 per tonne, returning to levels last seen about a year ago.
The more favourable pricing environment is expected to support Tata Steel’s earnings in the near term, particularly after a challenging phase for global steelmakers dealing with weak international demand and margin pressure.
UK recovery and Dutch operations in focus
Tata Steel’s UK business, which has faced pressure from restructuring costs and operational challenges, is now expected to return to profitability in FY27.
The company received policy support from the UK government in March, a move Tata Steel believes could help accelerate its turnaround efforts.
At the same time, the company said its Netherlands operations are expected to remain profitable despite ongoing discussions with local authorities around environmental transition measures and emissions control.
Narendran reportedly said Tata Steel is working with regulators on a phased transition plan involving coke production at the Netherlands facility. The company had already planned a gradual reduction over the coming years, targeting a broader transition timeline around 2028-29.
He also reportedly said a direct strip plant affected by emissions-related issues had remained shut for several weeks but is expected to reopen within the next few weeks.
Alongside operational restructuring, Tata Steel said it continues to focus on reducing debt while still investing in expansion and acquisitions.
The company reduced net debt by around ₹2,500 crore compared with March 2025 despite spending close to ₹3,000 crore on acquisitions, including a power plant in the Netherlands and additional stake purchases in Tata BlueScope.
Tata Steel currently has a market capitalisation of around £23 billion ($31 billion), while its shares have gained more than 33 per cent over the past year.
