According to data maintained by SteelMint, Indian DRI (Sponge) exports highest ever in FY17 at 340,200 MT which is an increase of 76.5% compared to 192,820 MT in FY16.
The exports has gain momentum due to few bulk shipments by JSW Steel from its Maharashtra, Western India based plant. The company was frequently in deals with global buyers for its DRI/HBI material over high availability. Hence, to deal in bulk and better margins the company has been exploring the international market.
Another major reason behind the rise in exports is higher prices of Imported scrap, which forced global buyers to procure Indian made Sponge iron.
Bangladesh remain the major buyer of Indian DRI as it procured about 60% material from the total exports, followed by Kuwait (17%) and Nepal (13%).
India is world’s largest sponge iron producer and has an installed capacity of 47-48 MnT and the production of sponge iron in the country is rising continuously following the boost in Iron ore production. The coal based sponge production in FY17 increased 6.5% to 24.4MnT against 22.9 MnT during FY16.
Sources: Steelmint Research and Customs
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