Indian Sponge Production Decreases by 6 % M-o-M in Jun’16

Indian sponge iron production fell by 6% in Jun’16, a consecutive fall since Apr’16.

India is the world’s largest sponge iron producer with an annual production of 26-28 MnT against the installed capacity of 46-47 MnT. India’s sponge iron production this year is expected to touch 29-30 MnT, registering an increase of 8% Y-o-Y.

Sponge iron production in the month of Jun’16 is at 2.34 MnT compared to 2.48 MnT in previous month. Cumulative production during Apr-Jun’16 was 7.52 MnT.

Note: The production of sponge iron is approximately derived from Iron ore dispatch from miners and imported iron ore. 

Sponge iron production decreased due to low conversion cost and subdued sponge selling price during the period. Generally, 50% of sponge is produce in Odisha and Chhattisgarh and during this period, prices declined by INR 1,000/MT in Odisha and INR 800/MT in Raipur. However, iron ore prices in Odisha fell marginally by INR 150-200/MT.

India’s sponge iron production

Quantity in MnT
Provisional Data
Source: SteelMint Research

Disclaimer: The production of sponge iron is approximately derived from Iron ore dispatch from miners and imported iron ore.