Bar & Rod import to India crossed 1.6 MnT in FY15. However, post BIS norms were made mandatory, Bar & Rod import started to fall. In Mar’15, the import fell by 50% against Feb’15.
Significant overcapacity in China ahead of demand has become a threat for the Indian Steel industry. Since a year, Indian Steel producers have been tussling with sharp rise in Steel import, especially from China and Russia. In FY15, Bar & Rod import to India jumped to 1.67 MnT which is an increase of over 200% from 0.52 MnT imported in FY14, as per data released by JPC – Steel Ministry.
In order to put a halt on import especially from China, Ministry of Finance last year had made BIS norms mandatory for all Steel products imported from other nations. Post the notification, Bar & Rod import started to fall and fell by 50% in the month of Mar’15 alone..
12 mm imported rebar was earlier booked (Dec’14) at INR 32,500-33,000/MT. Indian domestic prices were higher by INR 2,000-3,000/MT during the same period and Rebar traded in Mumbai region in the range of INR 31,000-34,000/MT (USD 490-525/MT) during Jan-March’15.
As per The Hindu-Business line report on 24 Apr’15, a parliamentary panel agreed with the proposal of the Steel Ministry for increasing import duty on Steel products. This step, if implemented, will provide relief to the domestic industry price war.
Other countries like US, European Union, Malaysia, Indonesia, Vietnam have already taken steps to put a halt on imported Steel products, especially from China.
Bar & Rod Import in Q4 FY15
|
Code |
CH-7228 | CH-7214 | CH-7213) | CH-7215 | CH-7227 | CH-7217 | Grand Total |
Change |
| Jan’15 | 34,868 | 24,632 | 6,851 | 1,650 | 82,145 | 9,383 | 1,59,528 | |
| Feb’15 | 80,361 | 13,254 | 7,137 | 2,054 | 85,903 | 11,301 | 2,00,013 | + 25% |
| Mar’15 | 26,994 | 13,270 | 3,247 | 1,514 | 57,846 | 10,703 | 1,13,577 | – 43% |
| Grand Total | 142,223 | 51,156 | 17,235 | 5,218 | 2,25,894 | 31,387 | 4,73,118 |
Quantity in MT
Source : SteelMint Research
Total Bar & Rod Import in FY15
| Month | Alloy Steel | M-o-M Change | Non-alloy steel | M-o-M Change | Total Bar and Rod Import (Alloy & Non-alloy Steel) | 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% | 1,08,490 | 24% |
| Sep’14 | 23,490 | -47% | 1,31,500 | 104% | 1,54,990 | 43% |
| Oct’14 | 61,600 | 162% | 1,42,300 | 8% | 2,03,900 | 32% |
| Nov’14 | 1,40,440 | 128% | 99,200 | -30% | 2,39,640 | 18% |
| Dec’14 | 1,63,000 | 16% | 85,600 | -14% | 2,48,600 | 4% |
| Jan’15 | 1,11,580 | -32% | 62,300 | -27% | 1,73,880 | -30% |
| Feb’15 | 1,55,590 | 39% | 47,800 | -23% | 2,03,390 | 17% |
| Mar’15 | 44,590 | -71% | 42,300 | -12% | 86,890 | -57% |
| Total | 7,99,010 | 8,29,090 | 1,628,100 |
Quantity in MT
Source: JPC- Ministry of Steel
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