HEG Limited CC-Feb26.pdf · 2026-02-11
Thank you for the opportunity. It is a fantastic set of numbers. And I always enjoy your calls, given how detailed and how patient you answer all our questions. So, my question is on the steel capacity that you mentioned is coming up in Europe and US over the next five years, right? I am not able to reconcile that data with the current capacity utilization there. So, the capacity utilization of steel is, I believe, between 50,000 to 55,000 right now, which means you have a lot of capacity lying idle. And even though new capacity will come and the numbers that we are discussing is, let us say quite large in context the current capacity already there. We are talking about 10% to 15% capacity coming. But where will the demand come from, right? Without the steel demand coming through, we will not be able to utilize the incremental electrode capacity also or the incremental electrode demand would not come. So, the capacity addition is fine, but it is coming at a time when the utilization itself is low. So, how sure are we of the utilization for the new capacity and the existing capacity is a question that I am not able to reconcile with the capacity coming on line?
So, do you mean to say that with this capacity addition that is coming for electric arc furnace across the western world, we are seeing an equivalent capacity of blast furnace shutting down as well, is it?