With recent decision by Indian government on demonetization on currency, local demand has taken a big hit.
Most of the industries are going through a tough phase, including sponge iron.
To overcome falling demand in domestic market, Indian manufactures are now eyeing export market.
This is quite evident with rising offers by Indian manufacturers to Bangladesh based furnaces in last few days. Bangladesh is the biggest importer of Indian sponge iron.
“Number of offers from India has increased in last few days. Current offers are assessed at around USD 235-245/MT CPT Benapole (land border of India and Bangladesh) for sponge lumps “said an Indenter based in Bangladesh. Bangladesh buy sponge iron grade FeM 80 C-DRI in bag packing.
One of the billet manufacturer based in Bangladesh also confirmed offers to be at around USD 240/t CFR Bangladesh of same grade.
On the other hand Indian sponge makers are struggling with falling demand and liquidity issue in India.
“To keep our plant running, we have to look for additional market” said a sponge manufacturer based in eastern India.
India exported 203,348 MT sponge iron during Jan-Nov 2016, out of which 196,034 MT was exported to Bangladesh. In Nov’16 sponge export have already recorded at 20,000 MT till 19th.
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