There was a meeting between Tata executives and labor unions in London. After this the new announcement of the company. The company will now focus on using an electric arc furnace to produce steel from recycled metal pellets. This process is relatively inexpensive.
Even if electric furnaces are introduced, the trade unions have put forward the idea that the current furnaces should be operational at least till 2032. But it is indicated that Tata Steel rejected this proposal. The company’s UK business has posted heavy losses in the past few quarters. A disruption related to a decarbonisation project at a plant in the UK led to a loss of Rs 6,511 crore for the company in the second quarter of fiscal 2023-24.
Tata Steel shares suffered a heavy loss yesterday, but today Tata shares are up. Tata Steel along with HDFC Bank were among the top losers in the Nifty yesterday. At the same time, Tata Steel shares are up today. Today, the share price rose 2.44 percent to Rs 134.20. Meanwhile, Kotak Institutional Equities changed the buy rating of the Tata Steel shares due to high volatility considering the risk. Meanwhile, the target price has been raised to Rs 145 from Rs 140 earlier.
Shares of Tata Steel have advanced nearly 20 percent in the last two months. Europe’s steel industry is also likely to face ongoing pressures.