Tata Steel (TATA) reported a strong 3QFY21, with consolidated EBITDA rising 161% YoY to INR94.6b (the highest ever) on the back of higher prices. Furthermore, net debt fell INR103b QoQ to INR884b (the lowest in the last 12 quarters), led by working capital release of INR72b. We estimate 4QFY21 EBITDA to be even stronger at INR132b (+40% QoQ), with standalone EBITDA/t of INR25,780/t (the highest in 12 years). Spot steel spreads have, however, declined in the past month, and we expect further moderation on softening prices. Moreover, a structural solution...