India: Bulk Pig Iron Export Volumes Halve in FY'19

According to customs data maintained with SteelMint, bulk Indian pig iron export volumes have come down sharply by 50% in FY19. India has exported 221,260 MT pig iron in FY’19 as against 446,250 MT in FY’18. In the month of March pig iron exports from India recorded at 50,000 MT against nil from the previous month.

Why did Indian pig iron exports fall in FY19?

1. Better realization in the domestic market - Yearly average of SteelMint's steel grade pig iron assessment in Cuttack stood at INR 28,000/MT in FY19 against INR 23,500/MT in FY18. Thus domestic prices recorded a yearly increase of around 19%.

On the other hand, Indian pig iron export prices moved up from USD 340-342/MT, FoB in FY18 to USD 370-375/MT, FoB in FY19. Yearly increase in Indian pig iron export prices stood at 9%. Thus it is evident that hike in domestic pig iron prices was higher than in exports which kept Indian pig iron manufacturers attracted towards the domestic market, limiting exports.

2. Capital repair at NINL - NINL's blast furnace resumed operations in May 2018 after the capital repair work spanning over three months. Following this, the company registered sharp increase in production. Pig iron production grew by 83.2% to 0.33 MnT, the steel mill's second-best since the date of starting commercial operations.

MMTC remained the largest pig iron exporter in FY’19 - MMTC (which exports on behalf of NINL) remained the largest pig iron exporter at 141,560 MT down 28% as against 195,350 MT. Vedanta stood the 2nd largest exporter from India at 52,700 MT( down 68%). Other exporter was RINL 27,000 MT (down 46%).

Bangladesh accounted for the largest share in Indian Pig iron exports - India exported 130,400 MT pig iron to Bangladesh in FY’19 and accounted for 59% share in exports. Another major destination was Thailand at 90,860 MT with 41% share.

Port-wise Indian pig iron exports-: Paradeep port recorded highest pig iron exports in FY'19 at 141,560 MT against 195,350 MT in FY'18 down by 28%, followed by Mormugao port at 52,700 MT (down 68%) and Vizag port at 27,000 MT (down 46%).