Global pig iron exporters are exploring Bangladesh market on account of rising steel making capacities in the country.
Recently, Steel Authority of India Ltd (SAIL), government owned and India’s largest steel maker has exported around 17,500 MT pig iron bulk vessel to Chittagong port, according to market participants.
Sources also mentioned that deal has been settled at around USD 240-242/MT FOB Haldia port for grade ‘A’ quality Pig iron, having carbon content of 3.8 to 4.2 %, Si content of 1.25 to 1.75%. Vessel has departed from Haldia (Indian East Coast) port first week of October and has reached Chittagong port on 12th October. It is the first export bulk vessel reported to Bangladesh ever according to data maintained by SteelMint.
Pig iron offers from Russia
Market participants highlight that traders are approaching Bangladesh steel makers for Russian and Korean pig iron, however due to high freight charges and longer transition time, steel makers at Bangladesh are more inclined towards Indian pig iron.
But the possibility of Russian and Ukrainian pig iron coming to Bangladesh can not be ruled out.
Increasing Crude Steel Capacity in Bangladesh
Bangladesh today is an emerging market as steel making capacity is increasing rapidly. Steel makers in Bangladesh have increased imports of DRI and Pig iron in order to maintain carbon content.
Bangladesh Steel Re- Rolling Mills Ltd (BSRM) and Abul Khair are the two large steel makers with an annual combined capacity of around 2.7 million tonnes.