Indian sponge iron export volumes were recorded at 0.34 million tonnes (mn t) in the first half of CY’21, as per customs data maintained with SteelMint. The volumes decreased by 8.1% y-o-y as compared to 0.37 mn t in H1CY’20.
The highest export volumes were recorded in Apr and May at 0.07 mn t in both Apr’21 and May’21, as per data collated by SteelMint. This was mainly because of rising global scrap prices and higher demand from Bangladesh during that period. Bangladeshi mills remained active in restocking sponge iron ahead of the Eid holidays in May’21.
Exports in Jun stable y-o-y, drop m-o-m
Exports of the material in Jun’21 were registered at 0.05 mn t, stable y-o-y. However, on a m-o-m basis, the volumes decreased by 28.5% as against 0.07 mn t seen in the previous month, mainly due to lower demand from Bangladesh and Nepal. Indian exports to Bangladesh dropped 23.6% m-o-m and those to Nepal fell sharply by 113.2% m-o-m in Jun’21..
Bangladesh largest importer in H1
Bangladesh continued to remain the largest importer of Indian sponge iron at 216,235 t in H1CY’21, a 19% y-o-y increase as compared to 182,193 t in the corresponding period last year (CPLY).
Nepal emerged as the second largest importer of Indian sponge iron in Jan-Jun’21, overtaking Bhutan with 102,723 t. Imports from Nepal rose by 25% y-o-y compared to 82,136 t in CPLY.
The third largest importer was Bhutan with 15,891 t. However, the import volumes from the country decreased by a sizeable 82.5% y-o-y as compared to 90,822 t in H1CY’20.
Outlook
Indian sponge iron exports are expected to see a slight drop in the near term as the key buyer, Bangladesh, has remained slow in booking due to the strict lockdown restrictions in the country which also include closure of steel mills. This has also impacted sponge iron bookings from India. SteelMint reported that the Bangladesh government had further extended its lockdown restrictions till 5 Aug’21, ordering shutdown of manufacturing plants which was further later extended till 10 Aug’21.
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