India, the world’s largest producer of sponge (DRI) iron, reported drastic fall in sponge import during FY16 as compared to FY15.
DRI import (HS Code: 72031000) to India in FY15 was assessed at 1,42,000 MT. While, in FY16 (Apr’15-Nov’15), only 17,000 MT is reported. Out of total import quantity, about 80-85% material is being imported from Oman and UAE and rest from other ASEAN countries.
The nation also imports the material from UAE & Bahrain. The Indian importers based on coastal areas are especially used to import DRI from ASEAN nations on account of cheaper offers.
The cause of fall in sponge import to India is cheaper billet/bloom offers by ASEAN countries. Melters in Indian market are preferring to roll billet instead of make billet to melt DRI.
Data Source: DGFT
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