Indian Sponge Iron Export Increases, Bangladesh procured 26,000 MT in Jun’16

Indian Sponge exports almost doubled during Jun’16 against in May’16. Sponge Iron exports were registered at 26,584 MT in Jun’16, which was at 17,930 MT in the month of May’16.

India is world’s largest sponge iron producer with an annual production of about 26-28 MnT against installed capacity of 46-47 MnT. There are over 400 sponge iron units in India. In the Country sponge iron production which was recorded at 23 MnT in FY15 surged by 22% Y-o-Y to 28 MnT in FY16. It is anticipated that production of Sponge iron will remains on upward mode due to ramp up Indian iron ore production and capacity expansion by primary & secondary manufacturers.

Bangladesh remains the largest importer of Indian Sponge iron, during H1 of 2016, India exported 1,05,859 MT of Sponge iron and from the total export Bangladesh’s contribution is 1,02,504 MT. Higher offers of Imported scrap & recently imposed import duty on billet by 20% are forcing Bangladeshi smelters to increase sponge purchase as well consumption. This has twofold Indian Sponge iron export.

It is anticipated Bangladeshi smelters will further increase sponge iron import to fulfill their semis requirement. This will support Indian sponge iron market.

Indian Sponge Iron Export since Apr’16

Quantity in MT
Source: SteelMint Research,Custom Data