In the month of Aug’16, Indian sponge export almost halved at 17,211 MT against 34,292 MT in Jul’16. Export in Jul’16 had risen significantly because out of the total export, JSW Steel exported 14,000 MT HBI (gas based) from its Dolvi plant. However, the rest of quantity was exported by secondary producers during the month.
But in Aug’16, JSW Steel did not exported any material, which led to fall in monthly export.
Bangladesh remained the most favorable destination of Indian DRI exports and contributed 89% of the total DRI exports from India, followed by Indonesia (7.8%). The rest material was exported to other South East Asian countries.
In Jun’16, Bangladesh government imposed 20% import duty on billet, which made billet/bloom import non-viable. Thus, Bangladeshi smelters are preferring DRI of Indian origin.
Current offers for shredded scrap are assessed at USD 245-250/MT, 78-80 FeM C-DRI at USD 220-225/MT and billet at USD 345-350/MT, CFR Bangladesh.
Total DRI export in FY17 (till Aug’16) was approx 111,700 MT against 48,900 MT in the same preceding month of FY16.
Indian Sponge Iron (DRI) Export since Apr’16
| Country | Apr’16 | May’16 | Jun’16 | Jul’16 | Aug’16 |
| Bangladesh | 14,756 | 16,785 | 26,301 | 33,548 | 15,363 |
| Madagascar | 112 | 438 | 110 | 110 | 110 |
| Djibouti | 540 | 540 | – | 540 | – |
| United States of America | 42 | 42 | 21 | – | 42 |
| United Arab Emirates | 20 | 40 | 40 | 40 | 40 |
| Others | 250 | 85 | 112 | 54 | 1,655 |
| Total | 15,720 | 17,930 | 26,584 | 34,292 | 17,210 |
Quantity in MT
Source: SteelMint Research, Custom Data
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