Imported sponge iron (DRI) has drawn attention of Indian importer as scrap prices moves up sharply. Although, India does not import sponge iron in large quantities but small parcels come in when prices are in parity with imported scrap prices. Notably, imported scrap prices have increased by upto USD 30/MT in last few weeks.
In a conversation with SteelMint Mr. Ravee Poddaar, Director of Tarang Exports Pvt Ltd (TEPL) India, majorly involved in imports of DRI presented the scenario in below excerpts.
1. Do you think India will import DRI even though it is the largest producer of it?
As you are aware, India is hugely reliant on Coal based DRI and there are just 2 producers of Gas Based DRI in India – JSW & Essar Steel and both of these manufacturers use this product majorly for their own use and do not supply to the customers. The customers only have access to Coal based DRI primarily.
Also presently imported DRI (Coal based) is cost effective than domestically available DRI/Scrap especially in port based location of west India.
2. What are the benefits of imported DRI over domestic sponge iron, what is the chemical composition, yield and which regions it is feasible and why?
The imported DRI is superior in all aspects such as chemical composition offering low Phos + low Sulphur content which is a boon for steel making and alloy manufacturers.
The imported material is suitable in terms of pricing parity as compared to other regions in India except regions such as Raipur which has its own huge DRI production and hence imported material cannot compete there.
3. How much volume your company is focused for sponge iron import?
We are currently doing volumes in excess of 10,600 MT to different customers in India and since availability is extremely tight we are growing the volumes slowly.
4. Is supply to India is regular and who bought the last vessel? Are they satisfied with material over domestic one?
The supply is quite regular. Few of our clients to whom we supply are RL Steel (MH), Kalika (MH), Electrosteel (Gujarat), Uttam Value (Wardha, MH), Mahalakshmi Ispat (Wardha, MH). Recently Essar steel also bought a bulk vessel last month for their unit based in Hazira and they are regular producers of the same item so they are very satisfied.
We are only dealing in containerized cargo for our customers. For more details visit: http://www.steelmint.com/tender/sale-of-direct-reduced-iron-7520
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