Business
Govt must monitor unfairly priced steel imports, says Tata Steel CEO TV Narendran – The Times of India
NEW DELHI: Govt must keep a watch on unfairly priced steel imports, Tata Steel MD and CEO TV Narendran told TOI in an interview, while adding that the price of the key industrial product is expected to rise in the domestic market in the current quarter. He also said that EU’s carbon border tax (CBAM) will have little impact on Tata Steel’s Indian operations and is a positive for its Europe business, as it levels the carbon cost for all suppliers selling into the region.Tata Steel CFO Koushik Chatterjee said the company managed to protect its margins in one of the toughest years for the steel industry in five years and that the India-EU FTA is an opportunity for Indian companies to transition into low-carbon technologies to export into the EU. Excerpts:PAT has jumped sharply year on year. How do you see the third quarter numbers?Chatterjee: The last three quarters’ consolidated numbers had an almost consistent EBITDA margin of about 15% in spite of very weak markets, especially in the second and the third quarter. It is attributable to the cost-takeout program that we announced in the beginning of the year, and we are almost on track, except in the Netherlands, where delays in the negotiations with the unions have pushed timing. What would have come by March will come now around June once the restructuring is completed. Our target has been to be in that zone of 15% EBITDA margin consolidated, which is essentially in the region of 22 to 24% for a standalone basis. With the Kalinganagar plant now commissioned almost fully and the downstream products mix also coming into play, India margins will look to expand. In the Netherlands we should see margin expansion because of consistent operating performance and two big regulatory impacts — CBAM, which will push the price up, and tariff quotas, which will come in from July. Overall, in one of the most challenging years in the last four or five years, we have been able to maintain this, we should be holding on to our cost gains and building on it. When the market provides that tailwind, we should be in a better position.Global and Indian steel prices have been weak. What is your outlook on margins for the next two quarters?Narendran: Steel prices seem to have hit its bottom in the last quarter. We are expecting steel prices to go up in India; realizations will be about Rs 2,200 higher per tonne for India for Tata Steel in the fourth quarter compared to the third. While the spot prices have started going up, the realizations quarter on quarter for us will be down about Rs 3,200 because of the mix, because we’re selling more volumes and some of the lower-price segments even though spot prices are up. Overall, we expect margins to be better in Q4. Volumes are also better for us in Q4 compared to Q3, by almost half a million tonnes and hopefully the momentum will carry on. We are watchful on coking-coal prices which have also gone up by about $50 in the last few weeks. The worst is behind us.Given India’s dependence on imported coking coal, are you seeing any structural relief on sourcing, or is cost volatility continuing?Narendran: Coking coal is not a very liquid market; it’s highly volatile depending on one-off events. If bad weather in Australia impacts ports, then coking coal prices shoot up. That’s a problem compared with iron ore, which is a much more liquid market for Tata Steel India. Most of the coal we import will be from Australia because that’s the best coal for us. The US trade deal opens up options from the US but those are not suitable for most of Tata Steel’s coal carbons because we use a technology called stamp charging for which Australian or Indian coal is better. The US coal is not so great… We buy some volumes for India where we use top-charged coal, coke-making technology at small volumes, but we buy coal from the US for the Netherlands. This will be a volatile market.On CBAM, how do you view the EU’s CBAM regulation and what impact will it have on your business?Narendran: CBAM is actually a carbon-equalization tax; it is less of a trade issue and more of a carbon-equalization tax. We operate in Europe, where we pay a carbon tax in Europe and CBAM ensures that anyone who sells in Europe pays the same carbon tax. So CBAM is positive for our European operation. We don’t sell much steel from India to Europe. So we are not impacted by CBAM significantly for the Indian operation.Indian steel volumes have been very strong. Which sectors are driving demand, and do you see any early signs of slowdown?Narendran: Indian steel demand has been strong. We’ve always said over the last few years that steel demand growth in India will be at a higher growth rate than the GDP growth rate because it’s investment-led growth. Earlier it used to be more consumption-led growth. So, if GDP was growing at 7%, steel demand would grow at 5%. Now when GDP is growing at 7%, we are seeing steel demand grow at 9-10%. We are seeing strong growth across sectors. Automotive is very strong. Construction is also continuing to pick up because of infrastructure spending. Some concerns have been payments from state governments; particularly the MSME sector gets impacted when projects’ payments come late, so liquidity has been a bit of a concern in the market. Otherwise, from a pure demand point of view, the Indian demand story has been great.How confident is Tata Steel in maintaining current utilisation levels at its Indian factories amid imports and rising competition?Narendran: We’ve always had among the highest capacity utilizations in the country. We are pretty much at 100% all the time, every year apart from the COVID year. Otherwise, we run full out unless there is a planned shutdown like blast-furnace refractory linings. Largely we are confident because we have a very strong franchise in the domestic market. Our exports are typically 5–10% of production because we are able to sell all that we produce in the domestic market. I don’t see that as a problem. We work well in advance of production to develop inroads in the market.How do you see the India-EU FTA impacting Tata Steel, given your international operations, and will it help collaboration on green steel?Chatterjee: One important thing in the FTA has been that CBAM has been kept as a carbon-equalisation measure because local players in the EU pay that carbon cost. CBAM itself is meant to trigger transition to green steel. We are seeing that in the Netherlands where we are involved and others of our peers are doing that and it may help Indian companies move towards a green-steel configuration especially those who want to export into the EU. To export into the EU you have to reduce your carbon footprint and modify technologies which will ensure CO2 levels go down. The carbon tax or the EU ETS tax will be a hindrance in exporting competitively into the EU. If the EU increases spending on defence, infrastructure and engineering, it can become an attractive market needing low-carbon steel. It is an opportunity for Indian companies to think about transiting into low-carbon technologies and making green steel if they have interest in exporting into the EU.How effective have recent safeguards by the Indian govt been in protecting the steel industry, and what more does the industry expect from the government?Narendran: The safeguard has been helpful. When it was announced, it was for six months, which created uncertainty; the notification ended in Nov and there was a period when it was not sure if it would get extended. That confirmation is helpful to give us long-term certainty. It’s been extended for another two years which is good. While we had originally asked for more safeguard, even this level is fine for the time being. Our ask of the government is always to keep a watch on unfairly priced imports. The steel sector is the biggest private-sector capital investor in the country and we shouldn’t be derailed by unfairly priced imports from countries and companies who are not making money at those prices. The second part is whenever there are trade complaints action should be taken fast because the damage is caused fast. The third part, which is already getting addressed in the budget, is to continue to spend on infrastructure because that not only helps demand for steel but also lowers the cost of doing business outside factory gates — logistics and transportation costs are important components of our costs. These are the areas where we can get help from the government, which we’re getting.What are Tata Steel’s top priorities over the next three years?Narendran: First, continued growth in India, not only in volume but also in terms of the right product mix. We will keep investing in downstream businesses. Second, transformation in Europe both in terms of financial performance in the UK as well as moving to greener process routes in the UK and the Netherlands. Third, in the Netherlands, where we are dealing with some challenges to our social licence to operate, we need to address those.There is a probe underway by the CCI against major steel players, including Tata Steel. What is your response, and have there been any discussions with the government?Narendran: We will follow due process. These are allegations being made and we have accessed the report and are reviewing it. From what we’ve seen, the commentary is more on steel prices moving up and down; steel prices reflect global prices and commodity movements like coking coal costs. It’s very open and transparent so we will make our submissions to the CCI. We will have the opportunity over the next few months and we feel we’ve done nothing wrong. Steel prices move up and down. We’ve also had the lowest steel prices in the last few three years so I don’t think anyone anywhere can control steel prices simply because it’s a global product and its price is determined by international factors. We’ll make a submission to the CCI and hopefully they will hear and appreciate our point of view.
Business
Fuel price hike impact: How it will change what you eat, how you travel and what you can afford
Your next trip to the fuel station just got more expensive!Fuel prices across the nation saw another revision, now becoming costlier by Rs 7.5 per litre since the Middle East crisis began. Early Monday, petrol prices were hiked by Rs 2.61 per litre, while diesel prices were increased by Rs 2.71, marking the fourth increase in just ten days.These back-to-back revisions are now raising concerns over a ripple effect on household budgets, inflationary pressures, and everyday commuting costs, leaving consumers to quietly do the math all over again.The latest round of price hikes comes against the backdrop of the ongoing conflict in the Middle East, which has tightened global energy supplies. With crude shipments under pressure and geopolitical tensions showing little sign of easing, international oil prices have been trending higher, with the impact steadily filtering into domestic retail markets.Retail fuel prices had remained largely unchanged for nearly four years before the first hike on May 15, making the sharp, fortnight-long surge in prices all the more striking.Prices continue to vary across states due to differing local taxes.
Impact of rising petrol and diesel prices
Impact on transportation
Transportation is the first and most direct sector to feel the impact of petrol and diesel price hikes. Your drive to the office, that weekend road trip, and quick grocery run — everything will now cost slightly more. With the latest increase, transporters are under significant operational pressure after four rapid fuel revisions. Fuel alone accounts for more than half of truck operating costs, and when added to rising expenses such as tires, insurance, tolls, maintenance, finance costs and statutory compliances, transport operations are now facing severe pressure on viability.“Fuel alone accounts for nearly 55% of truck operating costs. Along with increasing costs of tyres, insurance, tolls, maintenance, finance costs and statutory compliances, the viability of transport operations is under severe pressure,” one transporter told TOI.Transporters also argue that instead of repeated smaller hikes, a single transparent fuel pricing decision would allow better planning of freight structures and business viability.
Supply chains and deliveries
Rising fuel prices are also creating wider pressure across supply chains and delivery networks in the country. Logistics operations are under strain, with transporters already raising freight charges, a move that is expected to increase the cost of delivered goods, including essential items. At the same time, higher operating costs are affecting delivery schedules, reducing overall efficiency in supply chains and last-mile distribution systems.In several regions, reports suggest that a large number of vehicles are being kept idle as operating costs and challenges continue to rise, leading to estimated losses of nearly Rs 3,500 per vehicle per day in some sectors. The ripple effect is already visible, with disruptions in vehicle movement, pressure on supply chains, delayed deliveries, and growing strain on manufacturing, import-export activity, and the movement of essential commodities.
Household bills go up
Rising petrol and diesel prices are set to squeeze household budgets, making everyday expenses, from food delivery and groceries to dining out, more expensive. As fuel costs climb, transport-linked expenses across essential goods are also rising, adding to the burden on consumers and pushing up overall living costs. The impact is expected to deepen further, with inflationary pressures building across the economy. Your daily consumption basket: including staples, packaged foods and other essentials could get costlier in the months ahead as higher fuel prices feed into supply chain and input costs. The latest fuel price revision, amid ongoing Middle East tensions, is also likely to pressure FMCG companies, which may be left with limited options such as selective price hikes or reductions in product grammage, according to industry executives. Freight costs are set to increase distribution and input costs, further straining margins of companies already grappling with 8-10% inflation.“If fuel prices remain elevated over multiple quarters, companies may eventually resort to calibrated price hikes or grammage reductions, which could weigh on consumption recovery, particularly in price-sensitive rural markets’’ Naveen Malpani, partner and consumer & retail industry leader, Grant Thornton Bharat had told TOI.FMCG companies like Nestle, Hindustan Unilever, Marico and Dabur have seen demand recovery but are facing rising input costs and inflation pressures. To offset this, they have already taken 2–5% price hikes and may consider further increases along with cost-cutting measures.
Impact on economy
Finance minister Nirmala Sitharaman on Monday assured that India’s economy continues to show resilience on a broader note. “We should appreciate that the challenges are more externally driven. We must also recognise that India’s domestic economic situation remains positive and resilient even today,” the FM said.
At the same time, rising fuel prices have raised concerns about creating wider economic pressure as transportation costs feed into supply chains. This is increasing the cost of essentials, including fruits and vegetables, and adding inflationary pressure across sectors. The movement of goods, manufacturing activity, and import-export operations are all experiencing stress due to higher logistics costs and delivery disruptions.
OMC shares soar
Fuel price revisions have also influenced market activity. Shares of major oil marketing companies moved higher on Monday, with Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation (IOC), and Bharat Petroleum Corporation Limited (BPCL) all soared in green.IOC shares rose 4% to Rs 145, HPCL surged 6% to Rs 412.55, and BPCL advanced over 4.5% to Rs 309 on the BSE. The movement came as crude oil prices touched a two-week low amid signs of progress in US-Iran peace talks.Meanwhile, before the recent price hike, the government had been stepping in to help oil marketing companies (OMCs) manage the pressure from rising crude prices by cutting excise duties. Now, the FM highlighted, any reduction in excise duty on petrol and diesel would result in a revenue impact of around Rs 1 lakh crore.
What’s ahead for OMCs?
Earlier, in the absence of price hikes, oil marketing companies (OMCs) were facing heavy losses of up to Rs 1,000 crore per day. Now, with fuel prices rising by nearly Rs 7 per litre, the question is whether these losses will be reduced or not.The recent series of back-to-back price increases is expected to provide some relief to OMCs, but it is unlikely to fully offset their burden. Even if the situation in West Asia stabilises, uncertainty around the Strait of Hormuz is expected to persist for some time, keeping crude prices elevated, likely above $90 per barrel.At the same time, a weakening rupee continues to add pressure on margins. “Combined with a weakening rupee, this continues to pressure OMC margins, and they could still face under-recoveries. Going forward, some calibrated price revisions may be required. The government will need to balance OMC financial health against the impact on consumers,” Sourav Mitra, Partner – Oil and Gas, Grant Thornton Bharat told TOI.
3 F’s in focus
Finance minister Nirmala Sitharaman has also urged the country to focus on the 3 Fs, of fuel, fertiliser and forex. Apart from elevated crude oil prices, fertiliser costs have also surged to “unimaginable” levels, the FM noted, adding that high gold prices are creating additional challenges on the external front. She emphasised the need to focus on the “three Fs,” fuel, fertiliser and forex, pointing out that Prime Minister Narendra Modi’s recent appeals have been made in this context.Taken together, the latest fuel price revisions are no longer just a heavier cost at the petrol pump, they are beginning to ripple through daily lives. From transporters recalibrating freight rates and supply chains under strain, to households quietly tightening monthly budgets, the impact is gradually seeping into everyday life. With global crude trends still uncertain and geopolitical tensions far from settled, the outlook for fuel prices remains vulnerable to developments beyond the country.
Stock market rallied sharply on Monday, with the Sensex soaring more than 1,000 points and the Nifty reclaiming the 24,000 mark, as easing geopolitical tensions in West Asia and falling crude oil prices boosted investor sentiment globally.The 30-share BSE Sensex jumped 1,073.61 points, or 1.42 per cent, to close at 76,488.96, while the NSE Nifty 50 surged 312.40 points, or 1.32 per cent, to settle at 24,031.70.The rally came after optimism grew around a possible agreement between the United States and Iran, following remarks by US President Donald Trump over the weekend that a deal was “largely negotiated”.
Nifty50 top gainers
| Company Name | Current Price (Rs) | Price Change | % Change |
|---|---|---|---|
| Eicher Motors | 7,414 | 433.00 ↑ | 6.20% ↑ |
| Adani Ent. | 2,850 | 132.00 ↑ | 4.88% ↑ |
| Bajaj Finance | 941.90 | 25.40 ↑ | 2.77% ↑ |
| Tata Motors PV | 373.25 | 9.90 ↑ | 2.73% ↑ |
| L&T | 4,033 | 107.00 ↑ | 2.72% ↑ |
| HDFC Bank | 786.85 | 20.10 ↑ | 2.62% ↑ |
| Eternal | 247.67 | 5.72 ↑ | 2.37% ↑ |
| Bajaj Finserv | 1,807 | 41.40 ↑ | 2.35% ↑ |
| Kotak Bank | 392.85 | 8.71 ↑ | 2.27% ↑ |
| Shriram Finance | 961.95 | 21.00 ↑ | 2.23% ↑ |
Sensex top gainers
| Company Name | Current Price (Rs) | Price Change | % Change |
|---|---|---|---|
| Bajaj Finance | 941.90 | 25.40 ↑ | 2.77% ↑ |
| L&T | 4,033 | 107.00 ↑ | 2.72% ↑ |
| HDFC Bank | 786.85 | 20.10 ↑ | 2.62% ↑ |
| Eternal | 247.67 | 5.72 ↑ | 2.37% ↑ |
| Bajaj Finserv | 1,807 | 41.40 ↑ | 2.35% ↑ |
| Kotak Bank | 392.85 | 8.71 ↑ | 2.27% ↑ |
| ICICI Bank | 1,292 | 27.50 ↑ | 2.18% ↑ |
| SBI | 969.60 | 20.40 ↑ | 2.15% ↑ |
| Axis Bank | 1,311 | 25.80 ↑ | 2.01% ↑ |
| Titan Company | 4,159 | 79.40 ↑ | 1.95% ↑ |
Nifty50 top losers
| Company Name | Current Price (Rs) | Price Change | % Change |
|---|---|---|---|
| Max Healthcare | 1,001 | -22.40 ↓ | -2.19% ↓ |
| ONGC | 284.95 | -5.06 ↓ | -1.75% ↓ |
| Hindalco | 1,100 | -9.61 ↓ | -0.87% ↓ |
| Nestle India | 1,414 | -9.50 ↓ | -0.67% ↓ |
| Bajaj Auto | 10,491 | -58.50 ↓ | -0.56% ↓ |
| Infosys | 1,169 | -6.00 ↓ | -0.52% ↓ |
| TCS | 2,308 | -9.11 ↓ | -0.40% ↓ |
| Tata Consumer | 1,187 | -4.60 ↓ | -0.39% ↓ |
| HUL | 2,197 | -7.10 ↓ | -0.33% ↓ |
| Sun Pharma | 1,841 | -4.00 ↓ | -0.22% ↓ |
Sensex top losers
| Company Name | Current Price (Rs) | Price Change | % Change |
|---|---|---|---|
| Infosys | 1,169 | -6.00 ↓ | -0.52% ↓ |
| TCS | 2,308 | -9.11 ↓ | -0.40% ↓ |
| HUL | 2,197 | -7.10 ↓ | -0.33% ↓ |
| Sun Pharma | 1,841 | -4.00 ↓ | -0.22% ↓ |
| Kwality Wall’s | 26.33 | -0.06 ↓ | -0.19% ↓ |
Oil prices tumble as Iran deal hopes rise
Investor confidence improved as markets increasingly priced in the possibility of a diplomatic breakthrough between Washington and Tehran, which could lead to the reopening of the Strait of Hormuz and ease global energy supply concerns.According to news agency ANI, market expert Ponmudi R said optimism surrounding a potential US-Iran agreement revived risk appetite across global markets.“Investor sentiment improved significantly after Donald Trump stated over the weekend that a deal was ‘largely negotiated’, encouraging markets to increasingly price in the possibility of a near-term diplomatic resolution,” he said.He added that markets would look for the “successful implementation of a lasting peace agreement and the credible reopening of the Strait of Hormuz”.Brent crude prices dropped sharply below the $100 per barrel mark and were trading around $98 per barrel, down more than 5 per cent during the session.The Indian rupee also recovered strongly, gaining 48 paise to trade at Rs 95.21 against the US dollar after recent weakness.
Banking stocks lead market rally
Financial stocks led the gains on Dalal Street. Bajaj Finance, Larsen & Toubro, HDFC Bank, Eternal, Bajaj Finserv and Kotak Mahindra Bank emerged among the top Sensex gainers.Sectorally, Nifty PSU Bank rose 2.73 per cent, while Nifty Private Bank advanced 2.02 per cent, as per ANI. Nifty Auto climbed 1.66 per cent and Realty gained 1.54 per cent.However, FMCG stocks remained under pressure. Infosys, Tata Consultancy Services, Sun Pharma and Hindustan Unilever were among the laggards.
Global markets gain amid improving sentiment
Asian markets also ended higher on Monday amid improving global risk appetite. Japan’s Nikkei 225 surged 2.76 per cent, while Taiwan’s weighted index jumped 3.15 per cent.European markets were trading in positive territory, while US markets had settled higher on Friday.Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,440.47 crore on Friday, according to exchange data.
Business
Gold price today: Yellow metal rises; check 24K, 22K city-wise rates in Delhi, Mumbai, Kolkata and more
Gold prices rose in futures trade on Monday, tracking gains in global markets amid growing optimism surrounding a possible peace agreement between the United States and Iran. Retail gold rates across major Indian cities also moved higher, with 22K, 24K and 18K prices recording gains compared to the previous day.On the Multi Commodity Exchange (MCX), gold contracts for June delivery climbed by Rs 426, or 0.27 per cent, to Rs 1,59,105 per 10 grams in a business turnover of 5,312 lots. As per PTI, analysts attributed the rise to a weaker US dollar and positive sentiment linked to the ongoing US-Iran negotiations.Gaurav Garg, research analyst at Lemonn Markets Desk, said easing crude oil prices and hopes of a peace deal supported bullion prices globally. In the international market, Comex gold futures for the June contract rose nearly 1 per cent to USD 4,590.62 per ounce in New York, as quoted by news agency PTI.Analysts also noted that hopes of easing tensions in West Asia have reduced fears of another inflationary spike driven by oil prices, supporting sentiment in precious metals markets.
City-wise gold rates today
Gold rate in Bengaluru today:Gold prices in Bengaluru have moved higher today. The 24K gold rate stands at Rs 15,938 per gram, while 22K gold is priced at Rs 14,610 and 18K at Rs 11,954 per gram, all up from yesterday’s levels.Gold rate in Delhi today:In Delhi, gold prices recorded gains across categories. The 24K gold rate is Rs 15,953 per gram, while 22K gold stands at Rs 14,625 and 18K at Rs 11,964 per gram.Gold rate in Mumbai today:Mumbai has also witnessed an increase in bullion prices. The 24K gold rate is Rs 15,938 per gram, while 22K and 18K gold are priced at Rs 14,610 and Rs 11,954 per gram, respectively.Gold rate in Chennai today:Gold prices in Chennai have risen sharply compared to other cities. The 24K gold rate stands at Rs 16,124 per gram, while 22K gold is at Rs 14,780 and 18K at Rs 12,400 per gram.Gold rate in Kolkata today:Kolkata has seen a rise in gold prices today. The 24K gold rate is Rs 15,938 per gram, while 22K gold is priced at Rs 14,610 and 18K at Rs 11,954 per gram.Gold rate in Hyderabad today:Gold prices in Hyderabad have edged higher. The 24K gold rate stands at Rs 15,938 per gram, while 22K and 18K gold are available at Rs 14,610 and Rs 11,954 per gram, respectively.Gold rate in Ahmedabad today:Ahmedabad has recorded gains in gold prices. The 24K gold rate is Rs 15,943 per gram, while 22K gold stands at Rs 14,615 and 18K at Rs 11,959 per gram.Gold rate in Jaipur today:In Jaipur, gold prices have moved up today. The 24K gold rate stands at Rs 15,953 per gram, while 22K and 18K gold are priced at Rs 14,625 and Rs 11,964 per gram, respectively.Gold rate in Bhubaneswar today:Gold prices in Bhubaneswar have increased from yesterday’s levels. The 24K gold rate is Rs 15,938 per gram, while 22K gold is at Rs 14,610 and 18K at Rs 11,954 per gram.Gold rate in Pune today:Pune has also witnessed higher bullion rates. The 24K gold rate stands at Rs 15,938 per gram, while 22K and 18K gold are priced at Rs 14,610 and Rs 11,954 per gram, respectively.Gold rate in Kanpur today:Gold prices in Kanpur have edged higher today. The 24K gold rate is Rs 15,953 per gram, while 22K gold stands at Rs 14,625 and 18K at Rs 11,964 per gram.
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