India, one of the major exporter for Sponge iron has registered a sharp growth in exports in H1 2017 against same preceding last year which was quite low, according to Indian customs, data compiled by SteelMint statistics.
Statistics showed total bulk exports for Sponge iron in H1 (Jan-Jun) CY 2017 at 250,000 MT, surge by 78% against 140,000 MT in the H1 2016. While, in the H2 (Jul-Dec) of CY 2016, the export was around 170,000 MT.
The Sponge exports has gain momentum due to sharp surge in Global Scrap & Billet prices amid absence of Chinese sellers. The exports have been successful with the presence of major giants like JSW, TATA, Monnet and small lots by big manufacturers based in Odisha & West Bengal.
India’s monthly bulk exports for sponge iron is almost firm in June 2017; which is consecutively similar from past three months.In Jun’17, the nation’s export for sponge iron logged at 30,000 MT which is similar against imports in Apr’17 & May’17.
Country wise exports & imports –
During CY 2017 (Jan-Jun), the largest importers of Indian made Sponge iron was Bangladesh (48.58%) Thailand (13.24%), Indonesia (12.03%), Kuwait (12.00%) & also in line countries like Malaysia, Nepal & South Africa.
And the major exports were done from the Indian ports like Paradeep, Mormugao & Haldia.
In context to imports, in H1 2017, Sponge (DRI) imports in India recorded at 0.06 MnT from United Arab Emirates, South Africa & Saudi Arabia. Prior to this in H1 2016, India imported only 0.01 MnT DRI after that it was nil during H2 2016.
Production Performance –
India has sponge iron installed capacity is around 47-48 MnT, out of which 8-9 MnT is produced through gas and 39-40 MnT is through coal route, with over 400 sponge units. Sponge contributes 25-30% of India’s total crude steel production of 96-97 MnT.
In the FY17, the major production growth in sponge is registered in key producing states i.e. Chhattigarh (20.92%), Odisha (6.92%), West Bengal (51.46%) & Jharkhand (2.54%).
Latest Updates
1. India’s fresh export offers for C-DRI lumps with Sulphur 0.03-0.05%, Phosphorus 0.05-0.07 & carbon max at 0.11-0.12% are reported at USD 320/MT CPT Benapole port, Bangladesh.
2. Pellet exports from India have climbed to almost 38 months high in the recent export tender by JSPL for 50,000 MT.
3. Indian domestic sponge iron assessment produced through coal route are assessed at INR 17,800-19,000/MT (USD 278-297), ex-plant & excluding of GST.
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