European prices have dropped by 1-2% to $ 925/tonne: Tata Steel

Price drop in India more pronounced than Europe; volume contraction is caused due to drop in turnover, not prices; input cost pressures likely to ease from September; financial charges up on one time payment of bank covenants: Tata Steel

Key Takeaways from Tata Steel Concall: The company saw sharp decline in demand in Europe. The price drop in India is more pronounced than Europe. A 33% volumes drop in NatSteel and Thailand in Q1. The European prices have dropped by 1-2% to $ 925/tonne. The volume contraction is caused due to drop in turnover, not prices. The worst affected segments include heavy construction in Europe. A turnover drop of 52% vs 41% cost drop in Europe. The input cost pressures is likely to ease from September. Most of cost savings to continue when volumes return. The financial charges up on one time payment of bank covenants. Q4 FY09 flat pdts prices lower than Q1 FY10. It expect flat product prices to firm up

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