Mr Ratan Tata chairman of TATA Steel said that TATA Steel Europe needs to focus on cutting down cost by identifying and sourcing raw material at competitive prices to keep its operations profitable.

Speaking at the company’s 105th Annual General Meeting, Mr Tata said that the steel industry in Europe, particularly the UK, has sought government help to meet new environment obligations. He hoped a favorable decision would be taken.

In his last speech as chairman, Mr Tata said steel has been referred to as both sunrise and sunset industry, but TATA Steel had the fortitude to see itself through. Mr Cyrus Mistry will take over as chairman by the end of 2012.

Mr Tata said Asia would regain momentum, while China and India will continue to grow. India will re establish its growth.

Fitch Ratings has revised the outlook on TATA Steel and TATA Steel UK Holdings to negative from stable. The outlook reflects Fitch's view that profitability pressures will remain on both companies given the challenging short-term outlook for the global steel market.

Fitch expects steel demand in India to be impacted in the near term due to slowing demand growth in various user industries. Besides, TATA Steel is likely to drive only partial benefit from its additional 2.9 tonnes a year Brownfield capacity during FY 2013, with full benefits expected to accrue next fiscal.

Source - The Hindu

(www.steelguru.com)