Indian steel demand remained subdued post monsoon quarter due to sluggish uptick across key steel consuming sectors like construction, general engineering and infrastructure. Rural demand also remained muted. The oversupply in global steel markets coupled with relative stability of Indian rupee versus dollar as compared to other and currencies has made India a favored import destination. India saw a surge in net imports from countries such as Japan, Korea and China.

As a result, the domestic steel prices retreated sharply in line with international steel prices. While the price drop in Hot Rolled Coils was marginally offset by the provisional safeguard duty imposed in September 2015, prices of value-added products like Coll Rolled products, galvanized products and rebars declined sharply. Despite these macro headwinds, the Indian operations of Tata Steel Limited reported strong growth in production and deliveries.

T. V. Narendran, managing director of Tata Steel India and South East Asia, said: "Steel markets in India have been affected by depressed international steel prices and predatory imports. Tepid demand among steel consuming sectors has further exacerbated the problem. Despite all these challenges, we continue to operate at full capacity and delivered 10.3 percent volume growth over last year. However, the quarter saw a sharp decline in steel prices which has impacted our margins. To realign ourselves with the new market realities, we are sharpening our focus on effective management of costs. We also continue to invest in our marketing franchise and in increasing the share of value added products.”