TMT bars demand to normalise by October: Electrosteel

Mumbai: Domestic demand for TMT bars is at about 85% of pre-Covid levels and is inching up, said Pankaj Malhan, chief executive, Electrosteel Steels Ltd. “Demand for the TMT bars segment is still at 85% of pre-Covid levels. That’s also because of the monsoon, but we are very bullish. This demand will be back to 100% in the next month itself,” Malhan told ET.

Electrosteel Steels Ltd (ESL) had exported about 50% of the steel produced in March. However, the export percentage has come down to zero since June. “Q2 has been a better quarter in terms of demand and production; this is the kind of V-shaped recovery we were expecting,” he said.

"With steel prices moving up by 25% in Q2, and demand picking up, we are hopeful that we will be even doubling our Q1 Ebitda,” Malhan said. Malhan said the company’s plans to double capacity at its Bokaro unit and set up a greenfield facility in Karnataka are being reviewed.