Bangladeshi steel manufacturers prefer to import ingot over billet due to latest imposition of USD 150/MT import duty on billet (HS code 7207).
In Durgapur, most of the manufacturers are eyeing to export ingot as they fetch premium of approx INR 400/MT as compared to material sold to domestic market. However, the exported material contains low sulphur & phosphorus and high manganese.
Latest export deals were heard at INR 19,700-19,900/MT (ex-Durgapur) and logistic cost of transport via road to Bangladesh is approx INR 1,200-1,400/MT. As estimated, CFR cost will be USD 320/MT (INR 21,400/MT).
Suppliers mentioned that in West Bengal, around 60-70% ingot manufacturers are active for exporting material to other nation.
It should be noted that MS ingot is being exported under HS code 7206. Whereas, MS billet is being exported under HS Code 7207, which has duty of USD 150/MT since Jun’16. Before increment in duty, West Bengal exported 2,40,020 MT billet & blooms during Apr-Jul’16.
Manufacturers quoted that MS ingot with Sulphur and Phosphorous (S+P) max upto 0.150% and Manganese (Mn) 0.45-0.50% is being exported. Whereas in local market, commercial grade material of S+P max 0.160% max and Mn 0.30% is being traded.
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