JSW Steel, India’s largest steel producer, has shipped 14,000 MT DRI (gas based) from its Dolvi plant to Bangladesh, according to sources.
As per sources, JSW has sold about 25,000-30,000 MT gas based DRI to Bangladesh market, out of which 14,000 MT has already been shipped in mid Jul’16. According to participants, cargo has been sold at a price of USD 220-225/MT (INR 14,500/MT), FoB Mumbai Port. The export price is equivalent to what the company is offering in domestic market. Sources reported the rest of material will be dispatched soon.
JSW is producing about 40,000-50,000 MT DRI every month against installed capacity of about 90,000 MT per month.
Last month Mumbai based smelters also purchased sponge from JSW at INR 14,100-14,300/MT ex-plant, Dolvi (Maharashtra).
Bangladesh – A potential market for Indian sponge exporters
Bangladesh is a potential market for Indian sponge exporters, especially after Bangladesh government has increased import duty on billet in the recent budget. The government is promoting steelmaking in the country, which will increase demand for scrap, sponge iron, HBI and Pig iron.
According to customs data, about 31,350 MT sponge iron has been exported in July (till 17 Jul’16), which is much higher as compared to previous month. Bangladesh contributes about 80% of India’s total sponge export.
Note: Jul export quantity is till 17 Jul’16
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