Bangladesh has significantly increased sponge iron (DRI) imports from India in current financial year. Imports have been increasing on account of increasing steelmaking capacity in the country. It is expected that 3 MnT crude steel making capacity will be operational in 2015.
Sponge iron exports from India are recorded at about 45,000 MT during April-Aug’15 and it is expected to grow in coming months, when more steel smelters will start their production.
Most of these exports are made by West Bengal based sponge manufacturers through truck movement at an average price of USD 260/MT, CFR Benapole, Bangladesh.
“Recently, Abul Khair – a Bangladeshi steelmaking company, has started their electric arc furnace, which is the prime reason for increase in imports from India. Bangladesh steelmakers will prefer imported scrap over sponge iron due to better yield. However, they will continue to import sponge iron in order to maintain carbon content”, reported a re-roller based in Bangladesh.
Bangladesh month-wise sponge iron import
| Month | Quantity in MT |
| Apr’15 | 4,680 |
| May’15 | 9,335 |
| Jun’15 | 10,480 |
| Jul’15 | 11,850 |
| Aug’15 (till 25th) | 9,202 |
| Total | 45,547 |
Source: SteelMint Research
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