Indian Pencil Ingot Exports at 13,851 MT in Sep’16

Bangladesh based re-rollers continue to import Indian ingots due to differential duty between ingots and billets.

Indian pencil ingot exports recorded at 13,851 MT in Sep’16 out of which 13, 827 MT was exported to Bangladesh. In Aug’16, the total export quantity were 17,312 MT, out of which 17,257 MT was exported to Bangladesh.

It’s noticeable that the Indian export of ingots have increased in last couple of months. Bangladesh government has imposed a regulatory duty of 20% and VAT of 15% on imports of billet from all origin. Whereas ingots have been kept out of duty structure, creating demand from Bangladeshi re-rollers.

Indian Billet export in Sep’16 was recorded at 121,700 MT against 107,800 MT in Aug’16.Total export from India in during Apr- Sep’16 was recorded at 552,800 MT against 290,000 MT in the same period in 2015.

Note: MS ingot is being exported under HS code 7206 whereas, MS billet is being exported under HS Code 7207, which has duty of USD 150/MT since Jun’16.