No Steel Exports From India To The US, But There Could Be An Indirect Impact Of Tariffs: Tata Steel

Tariffs on India exports to the US doesn't have a significant impact on us because firstly we are not selling anything from India to the US. The next question is then does it impact us indirectly because some of our customers may be exporting to the US. Yes, the answer is yes but it's not such a big component of our volumes. The second part is this is what he has announced but as we've seen in the past as well, I think it eventually depends on where it lands at the end of the negotiations with the Indian government. So I think it's too early to draw conclusions but yes, it's something which concerns India because non-steel exports like pharma and many other industries are dependent on the US market. So I think we should watch that from that perspective.

That is certainly being impacted by the actions taken by President Trump. Within the UK there is a 10% agreement on the exports. I think the conversation between the UK government and the US is more on the melt and pour conditions because as you know we are currently shipping steel from Netherlands and India to UK for converting from slabs into hot roll coils and downstream products. So that's the only part which we are waiting for clarity from Europe. While recently there's been an agreement but on steel our current understanding it still stays at 50%, which is very significant. So that's a matter of concern. It has an impact on us but some of these costs are being passed on to our customers because unfortunately for the US customers they don't have domestic options to source the steel and are dependent on imports. So there is a part of that cost going on to customers in the US and part of those costs will have to be borne by us. So we're taking some mitigating actions. It's about 10% of our volumes. So it's not that material from a volume point of view but they're all profitable and high-end products so it's not easy to develop alternate markets for that either.

Yeah, that's right. About 700,000 tons Netherlands, slightly less than 100,000 in UK. So in UK it's less than 10%, it's about 10% in Netherlands.

Yeah. I think last quarter we had guided a $10 reduction. We are in that range. $10 to $15 reduction is what we had guided both for Europe and India. We are in that range. Next quarter also, or rather this quarter will also be about $10 lower per coking coal in consumption costs.