Indian DRI export increased by around 30% in Oct’16. Bangladesh contributes more than 95%, it remained the most favorable destination of Indian DRI exports.
Indian DRI export in Oct’16 was recorded at 14,800 MT against 11,350 MT in Sep’16. growth of 30%. Total export from India in FY17 (Apr-Oct’16) was recorded at 137,800 MT against 61,600 MT in the same preceding month of FY16; increased by 124%.
During the month the major exporters was West Bengal (East India) based manufacturers as its exported around 13,100 MT sponge iron through road to Petrapole LCS port. While thin quantity is being exported by Karnataka (South India) based manufacturers at 1,200 MT- According to Indian customs.
It seems that Indian sponge exports may gain momentum due to rising global scrap prices. Currently offers, CNF Balgladesh are as follow- HMS (80:20) scrap at US$ 250-260/MT, Shredded at US$ 270-280/MT, While Sponge C-DRI (80 FeM, lumps) at USD 250-260/MT. It should be noted that as per SAFTA agreement there is no import duty on sponge iron from India. Where as scrap attract duty of US$ 19-20/MT (1500 BDT) on CNF prices along with port clearance charges.
Indian Sponge Iron (DRI) Export since Apr’16
| Country | Apr’16 | May’16 | Jun’16 | Jul’16 | Aug’16 | Sep’16 | Oct’16 |
| Bangladesh | 14,756 | 16,785 | 26,301 | 33,548 | 15,363 | 10,481 | 14,400 |
| Madagascar | 112 | 438 | 110 | 110 | 110 | 165 | 220 |
| Djibouti | 540 | 540 | – | 540 | – | – | |
| United States of America | 42 | 42 | 21 | – | 42 | 21 | 42 |
| United Arab Emirates | 20 | 40 | 40 | 40 | 40 | 40 | – |
| Others | 250 | 85 | 112 | 54 | 1,655 | 658 | 110 |
| Total | 15,720 | 17,930 | 26,584 | 34,292 | 17,210 | 11,365 | 14,772 |
Quantity in MT
Source: SteelMint Research, Custom Data
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