Price gap between Indian & Chinese Re-bar is lucrative for Indian traders.
Most hyped imported Re-bar from China, which has caused a worry for Indian domestic steel mills, is now available in the domestic market.
Trade sources have confirmed that offers for Chinese Re-bar are at USD 510-525/MT CIF India, which effectively comes out to be INR 42,500-43,000/MT (all inclusive) delivered to Delhi and INR 40,500-41,000/MT (all inclusive) delivered to Mumbai.
“Current cost of imported Re-bar is cheaper by INR 1,500-3,000/MT than domestic prices. With superior quality, builders & contractors are showing interest in this material,” said a trader based in Delhi, who received offers from an importer.
Importers mentioned that there is nothing illegal in it, as all duties & taxes are paid under custom guidelines.
“As an importer, we always search for opportunity and in India buyers want better quality with competitive price. We are importing Re-bar from China under non-alloy steel category with all duty, taxes and custom clearance,” said an importer based in Delhi.
Recently, a vessel carrying approximately 30,000 MT Hard Re-bar was unloaded at Mundra port (Gujarat). Sources mentioned that cargo belongs to Reliance Industries.
Present prices on which we are working is INR 42,500-43,000/MT landed NCR region by West Coast port. The price includes 4% SAD, which is adjustable in case of trader.
Difference between Chinese & Indian Re-bar Prices
|
S. No. |
Particular (12 mm Re-bar) |
China Re-bar Prices |
Indian Secondary Re-bar prices |
|||
|
USD/MT |
INR/MT |
Ex-Mumbai |
Ex-Chennai |
Ex-Delhi |
||
|
1 |
CIF |
510 |
31,110 |
|
|
|
|
2 |
Assesable value (CIF* 1.01%) |
515 |
31,421 |
|
|
|
|
3 |
Custom duty @5% |
26 |
1,571 |
|
|
|
|
4 |
Sub-total (2+3) |
541 |
32,992 |
34,100 |
35,800 |
36,100 |
|
5 |
CVD/Excise duty @12% |
65 |
3,959 |
4,092 |
4,296 |
4,332 |
|
6 |
Cess on CVD/Excise duty @3% |
2 |
119 |
123 |
129 |
130 |
|
7 |
Cess on Customs(3+5+6*3%) |
3 |
169 |
|
|
|
|
8 |
Sub-total (4+5+6+7) |
610 |
37,239 |
38,315 |
40,225 |
40,562 |
|
9 |
SAD @4% for Import or VAT @ 5% in Domestic |
24 |
1,490 |
1,916 |
2,011 |
2,028 |
|
10 |
Total Duty Payable |
120 |
7,308 |
|
|
|
|
11 |
Total ex-port price (Mumbai/Mundra/Chennai) |
635 |
38,729 |
40,230 |
42,236 |
|
|
12 |
Port clearance |
10 |
610 |
|
|
|
|
13 |
Fix Cost (Stockyard, Manpower etc ) |
– |
– |
|
|
|
|
14 |
Freight West Coast to NCR |
45 |
2,745 |
|
|
|
|
15 |
Total Landed Costs at Delhi |
690 |
42,084 |
|
|
42,590 |
|
16 |
Price Difference Comparison (Domestic – Imported) |
|
|
1,501 |
3,507 |
506 |
Note: Primary Re-bar producers is trading 12 mm at INR 49,000-50,000/MT (inclusive all taxes).
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