Sponge iron exports from India were registered at 0.04 million tonnes (mn t) in Aug’21, data maintained with SteelMint reveals. Export volumes fell by 20% m-o-m as against 0.05 mn t in Jul’21, mainly due to seasonal slowdown in demand and lockdown impact in Bangladesh. Weak demand, improved supply and a steady drop in raw material prices kept buyers away from making bookings, SteelMint reported.
However, on a y-o-y basis, India’s sponge iron exports stable in the corresponding period last year (CPLY).
Nepal emerges as largest importer
Interestingly, Nepal outstripped Bangladesh to become top importer of Indian sponge iron in Aug’21. The country imported 21,496 t, an increase of 24% m-o-m as compared to 17,372 t in Jul’21. Imports from Nepal increased due to increased demand as steelmakers are setting up their own new furnaces. However, these volumes registered a sharp decline of 43% on a yearly basis.
On the other hand, Bangladesh, the leading buyer of sponge iron from India, slid to the second position with 18,767 t, down 25% m-o-m and 12.8% y-o-y. Imports from the country dropped on account of lower demand amidst lockdown restrictions imposed to curb Covid spread.
The third largest importer was Bhutan with 2,823 t, down 7.3% m-o-m and 3% y-o-y.
Exports dip 7% in Jan-Aug’21
Sponge iron exports from India dropped 7% y-o-y in the first eight months of CY’21, ie, from Jan-Aug’21, according to SteelMint data. Total exports of the material in this period were recorded at 0.43 mn t as against 0.46 mn t in the corresponding period last year (CPLY).
Bangladesh remained the largest sponge iron importer from India at 260,005 t in Jan-Aug’21, a 13% y-o-y increase. The second largest importer was Nepal with 141,591 t followed by Bhutan with 21,345 t.
Outlook
Export demand in the following months is expected to improve with easing of lockdown restrictions in Bangladesh. Furthermore, demand from other major buyers, Nepal and Bhutan, will pick up with the passing of the rainy season, SteelMint notes.
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