Last week, Stephen Kinnock, Aberavon MP whose constituency includes Port Talbot, said in the House of Commons, the government’s
Large Business Interruption Loan Scheme was capped at £50 million, which was only one-tenth of what
believes is the cashflow impact on the company over a six-month period.
He later tweeted: “Steel underpins everything from cars to construction, to life-saving equipment for our National Health Service. There can be no post-pandemic economic recovery without steel. The UK government must urgently step up and enable the loan, to solve this temporary cash-flow crisis.”
have been facing headwinds since the pandemic as major customers like automobiles have halted production.
While releasing production numbers last week, Tata Steel
said that overall European steel demand had declined compared to normal as many customers, including European car manufacturers, had paused production. The utilisation levels were currently around 70 per cent and dispatches were continuing in both the UK and the Netherlands.
In Q4FY20, Tata Steel Europe was able to keep production and sales stable compared to Q3 FY20.
Tata Steel Europe’s sales were at 2.37 million tonnes compared to 2.35 mt in the previous quarter, and 2.57 mt in the year-ago period.
In contrast, Tata Steel India recorded a 17 per cent drop in sales at 4.03 mt compared to the previous quarter, primarily because of logistic issues and lower demand under lockdown. Europe, incidentally, was not under lockdown.
However, Edelweiss Research said that it expected Tata Steel Europe to make losses at an operating level in FY21. “We expect recovery only by Q4FY21,” the company said recently.