India’s exports of pig iron stood at around 152,000 t in Jul’21, which is 14% lower compared to nearly 180,000 t in Jun but substantially higher – around 87% – over Jul’20 exports that were recorded at around 80,000 t, as per data maintained with SteelMint.
Total pig iron exports in the Jan-Jul’21 period stand at 730,000 t, with the momentum picking up in Jun-Jul after having dropped somewhat in Apr-May, SteelMint notes. Notably, India’s exports of 1.03 mn t of pig iron in FY’21 were 169% higher, year-on-year (y-o-y), compared to just 380,000 t in FY’20.
Higher exports in 2020 turned out to be a safety valve for domestic steel mills sitting on inventory stockpiles during and after the COVID-induced national lockdown.
Although the second wave of the pandemic and subsequent regional lockdowns impacted domestic demand this year, record-high prices of steel and metallic products proved to be an inducement for domestic mills to raise exports. While pig iron exports in 2020 were 800,000 t, total exports in the Jan-Jul’21 period this year is already inching towards that figure.
China factor
Interestingly, pig iron exports to China increased 260% on month in Jul to over 112,000 t from about 30,000 t in Jun. Data shows that China has ramped up metallic imports from India accounting for 73% of total Indian pig iron exports in Jul.
As SteelMint has previously reported, China has slashed its pig iron import levy to 0% seeking to fulfill domestic demand while simultaneously cutting steel production. In the long run, China’s incremental growth in EAF steelmaking capacity, as envisaged by the National Development and Reform Commission, might well require sufficient metallic imports if BF capacity is simultaneously reduced to cut down emissions.
Additionally, Russia’s imposition of steel taxes and tariffs on pig iron exports has increased opportunities for Indian exporters.
Major exporters
So much so that leading steel producer JSPL has clocked exports at over 270,000 t in the Jan-Jul’21 period exceeding the entire volume achieved by the company in 2020. At nearly 200,000 t in the Jan-Jul period, major merchant pig iron producer Vedanta’s exports in 2021 have already surpassed the total volume of exports recorded by the company last year. Eastern India-based Rashmi Group, moreover, has clocked over 120,000 t of exports this year.
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