India: Rebar export shipments fall 67% m-o-m in Oct’21

India registered a significant 67% m-o-m fall in its rebar exports in Oct’21. The volumes stood at 44,372 tonnes (t) in Oct’21 as against 124,190 t in Sept’21, as per customs data collated by SteelMint.

Singapore largest importer

Singapore emerged as the largest importer of rebars from India in Oct’21 with 24,476 t. However, the volumes witnessed a fall of 33% against the corresponding period last year (CPLY).

Belgium acquired the second position among the top importers’ list in Oct’21 with 4,825 t followed by the United Arab Emirates (UAE) and Taiwan with 2,516 t (down 20%) and 1,419 t (down 65%), respectively.

Factors that weighed down Indian rebar export bookings

• Absence of fresh overseas inquiries: The Indian rebar export market remained silent in October as the key importing nations held themselves back from placing fresh inquiries. According to sources, buying interest was thin then, owing to soaring Covid cases and lockdown restrictions in Singapore and South East Asia as well as enough rebar inventories in Hong Kong.
• Bid-offer disparities: Although Indian mills lowered their rebar export offers in early-Sept’21, no booking was reported due to bid-offer disparities, SteelMint learnt from sources. Mills continued to raise domestic offers on the back of higher production costs. The monthly average of SteelMint’s BF-route rebar price assessment increased by 11% m-o-m to INR 57,600/t Exy-Mumbai.
• Volatility in Chinese rebar futures: Volatility in China’s rebar futures affected the country’s imports. According to data maintained with SteelMint, Chinese SHFE rebar futures contract for Jan’22 delivery closed at RMB 5,515/t in mid-Oct’21, falling from RMB 5,706/t assessed in end-Sept’21.

Exports up y-o-y in Jan-Oct’21

Exports of the material from India in Jan-Oct’21 stood at 1.02 million tonnes (mn t), a y-o-y surge of 149% compared to 411,906 t in the same period last year.

Hong Kong was the largest importer of rebar with 550,883 t in the period under review followed by Singapore and Italy. Exports to Singapore stood at 222,358 t and those to Italy at 31,874 t.

Outlook

Cost-effective offers from the Middle East countries and limited export bookings may keep Indian rebar exports low in the next month.