Indian government is likely to hike import duty on certain steel products in the upcoming budget to curb on rising imports.
Indian Steel Industry is under tremendous pressure on account of slowdown in the domestic market coupled with continuous surge in Steel import especially from China since last 9 months.
Primary makers have declined Rebar prices by INR 5,000-6,000/MT in the last 5 months owing to low consumption from end-users. It is expected that prices are likely to be under pressure in the current month too. However, no declaration has been made by the primary steel manufacturers on revision of Rebar prices for this month.
Viewing at rapid rise in Steel import since last few months, the primary steel manufacturers have urged the government to hike import duty on certain steel products in the upcoming general budget. Currently, import duty on Bar & Rod is 5%.
According to data with SteelMint, import of Bar & Rod in the month of December has touched around 286,000 MT, out of which China accounted for 73% of total import.
Import of Bar & Rod in Dec’14
|
Country |
(CH-7228) | (CH-7214) | (CH-7213) | (CH-7215) | (Ch-7227) | (CH-7217) |
Grand Total |
| China | 35,262 | 646 | 3,616 | 200 | 149,466 | 19,263 | 208,455 |
| China’s Share | 53% | 3% | 37% | 9% | 94% | 81% | 73% |
| Singapore | – | 15,923 | – | – | – | – | 15,923 |
| Slovenia | 21,585 | 21 | – | – | – | – | 21,605 |
| Others | 10,151 | 7,720 | 6,290 | 2,016 | 9,651 | 4,529 | 40,358 |
| Grand Total | 66,998 | 24,310 | 9,906 | 2,216 | 159,117 | 23,792 | 286,341 |
Quantity in MT
Source: SteelMint Research
As per monthly data released by JPC, Ministry of Steel, total import of Bar & Rod increased by 4% in Dec’14 as compared to previous month. Total import of Bar & Rod is around 1,200,000 MT since Apr’14 to Dec’14.
Total Import of Bar & Rod since Apr’14
|
Month |
Alloy Steel | M-o-M Change | Non-Alloy steel | M-o-M Change | Total Import |
M-o-M Change |
| Apr’14 | 21,560 | 0 | 25,210 | 0 | 46,770 | 0 |
| May’14 | 32,070 | 49% | 34,580 | 37% | 66,650 | 43% |
| Jun’14 | 8,230 | -74% | 45,970 | 33% | 54,200 | -19% |
| Jul’14 | 14,380 | 75% | 73,090 | 59% | 87,470 | 61% |
| Aug’14 | 44,040 | 206% | 64,450 | -12% | 108,490 | 24% |
| Sep’14 | 23,490 | -47% | 131,500 | 104% | 154,990 | 43% |
| Oct’14 | 61,600 | 162% | 142,300 | 8% | 203,900 | 32% |
| Nov’14 | 140,440 | 128% | 99,200 | -30% | 239,640 | 18% |
| Dec’14 | 163,000 | 16% | 85,600 | -14% | 248,600 | 4% |
| Total | 508,810 | 701,900 | 1,210,710 |
Quantity in MT
Source: JPC- Ministry of Steel
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