MUMBAI–India’s Tata Steel forecast improving global demand in spite of European woes, as the world’s No.7 steelmaker reported a bigger-than-expected drop in quarterly profit after being squeezed by weak prices, lower volume and higher input costs. The company, whose European operations account for two-thirds of its global capacity of about 28 million tons, reported consolidated net profit for its fiscal fourth quarter plunged 90 percent.
In the same period last year, a one-off gain had boosted earnings.
“We expect global steel consumption to improve but production may dip again,” finance chief Koushik Chatterjee told reporters. “Steel demand in emerging countries like India and China is growing, but in Europe it is expected to drop.”