Sponge iron exports from India were recorded at 0.13 million tonnes (mn t) in the third quarter of CY’21 (Jul-Sept’21), customs data maintained with SteelMint shows. Export volumes decreased by 31.5% on a quarterly basis compared to 0.19 mn t in Apr-Jun’21.
However, on a yearly basis, India’s sponge iron exports remained stable.
Nepal imports rise 70% q-o-q
Nepal was the largest importer of Indian sponge iron with 69,866 tonnes (t) in the Jul-Sept quarter. The volumes rallied by 70% q-o-q compared to 41,117 t in the previous quarter.
The country’s sponge iron imports rose due to increasing melting capacities and taxation amendments in terms of slashing import duty on sponge to zero against 5% earlier.
Imports from Bangladesh fall sharply
Bangladesh, the largest importer of sponge iron from India, recorded shipments at 52,883 t in the third quarter, a decrease of 61.5% q-o-q compared to 137,666 t in Q2CY’21.
Sponge iron exports from India fell on account of extended lockdown restrictions in the major importing nation, Bangladesh, during Q2 and Q3 amidst rising Covid-19 cases.
Moreover, domestic steel market sentiments remained dull due to the rainy season, which affected the country’s sponge iron imports.
Imports down 6% in Jan-Sept’21
Indian sponge iron exports decreased by 6% y-o-y to 0.47 mn t in Jan-Sept’21. Bangladesh was the largest sponge iron importing nation with 269,118 t in the period under review,
Nepal was the second largest importer with 172,589 t followed by Bhutan with 21,345 t.
Outlook
Indian sponge iron exports are expected to improve in the fourth quarter with decreasing Covid-19 cases and pent-up demand. Steel demand is likely to pick up which will boost the country’s sponge iron exports in the last three months of CY’21.
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