Tata Chemicals’ US & Europe exports to experience margin compression next year: R Mukundan
R Mukundan, MD & CEO, Tata Chemicals, says “the main issue which we will face going forward next year is going to be in terms of exports where compared to the pricing which we got in the export markets, we would see at least a $100 reduction. This is mainly out of exports coming out of the US and Europe. We have operations in the UK, similar to most people, there is going to be a compression of margin of at least a hundred pounds per tonne. Those are the two pressure points.”
Your performance has been impacted due to the weak demand trends. We spoke with your peers like GHCL and they said that they expect the European and US markets to recover after two to three quarters only. Is this something that you are experiencing as well?
R Mukundan: The challenge for demand is only from Western Europe. There is no demand issue in North America. In fact, North America is fairly stable and positive. Container sector in North America may have been a little impacted, but certainly the overall demand there is stable. The Latin American market has shown moving out of Western Europe because Western Europe demand is not there.
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We think Western Europe will continue to face downward bias at least for the next two-three quarters until rationalisation of capacities and operations
