Billet and Pig Iron Exports from India to Increase in FY17 – Reports

Exports of intermediaries product like Pig iron and billet from India is expected to rise in current financial year (FY17) owing to high production.

According to data, it is assessed that about 10-11 MnT additional production is in-line during FY17, which is more than 12% from previous year. Most of it is through blast furnace route.

For an instance, JSW Steel has given a production guidance of 15.75 MnT in FY17, which is higher by 2.8 MnT from last financial year.

Vizag Steel’s third blast furnace is likely to get operational this year, which may produce 1-1.5 MnT additional crude steel.

Bhushan Steel and Essar are consistently increasing their production. About 2-2.5 MnT additional steel production may come from them in year.

Tata Steel’s Kalinganagar plant has started this year. Additional 1.5 MnT crude steel is expected from them.

JSPL and SAIL are also increasing their production in order to increase their utilization levels.

Supply more than demand

In the situation, when Indian steel demand is expected to grow at 6%, supply will increase by 12%. Surplus production has to find a market and export seems to be the only option.

It is very sure that steel manufacturers will explore export potential in the form of Pig iron, billets, slabs and HBI to attain volume.

Billet, Pig iron & sponge iron exports from India in FY16

Source: Custom Data

Source: Custom Data

Source: Custom Data