Import of bar and rod (under Chapter 7213, 7214, 7227) to India stood at about 0.97 MnT during Apr’15- Jan’16.
Indian government on 5 Feb’16 fixed MIP on bar and rod import at USD 449-455/MT. Market participants expect this will stem the flow of import to India.
During Apr’15-Jan’16, India imported about 0.97 MnT bar and rod for the specific chapter 7213, 7214 and 7227 (contributes of 75%).
SteelMint spoke to an importer based in Mumbai, who said, “There is still not clear that what will be import price or on which price, duties will be applicable.”
He added further that there will be two options on which duties will be applicable.
Firstly, if imported price of bar and rod to India will be USD 400/MT and the government fixes MIP at USD 450/MT, then the duty will be applicable on MIP i.e. USD 450/MT.
Secondly, if imported price to India will be USD 400/MT and the government fixes MIP at USD 450/MT, then the duty will be applicable on imported price and difference/balanced amount will be paid to the government.
Current price scenario
Presently, Chinese rebar and wire rod export offers have increased by USD 5-10/MT from the starting of Jan’16 and stood at USD 260-270/MT, FoB main port.
In general, sea freight from China to India is around USD 10-15/MT; estimating CNF price at USD 270-280/MT.
Domestic 12-32 mm rebar prices in Mumbai are hovering in the range of INR 27,100-27,500/MT (USD 400-405/MT), ex-work; excise duty and other taxes extra.
Meanwhile, 5.5 mm wire rod prices in Raipur are assessed at INR 27,000-27,500/MT (USD 400-410/MT) ex-work; excise duty and other taxes extra.
Import Of Bar and Rod in India (Chapter/ HS code-wise)
| Chapter | Description | Quantity imported from April’15 till Jan’16 | MIP Price |
| 72131010 | STEEL RODS IN CUT LENGHTS (FMCG-20AP-5.00-H7) (STAINLESS STEEL ROD-RAW MATERIAL USED TO MAKE SMALL COMPONENTS BY MACHINE | 850 | 449 |
| 72131090 | STEEL BAR (HR) (FITMENT TO INDIAN NAVY SHIPS) | 4,115 | 451 |
| 72132020 | – | – | 449 |
| 72132090 | COIL H.D. GALVANIZED HSLA 360MIN MPA J2340 GALV 90G/90G01 HDHS .037/.041 .82680 | 4,643 | 451 |
| 72139110 | HIGH PURITY ELECTORDE QUALITY MILD STEEL WIRE RODS HOT ROLLED, IN COILS OF MAX. 2.70 MT DIA 7.0 MM | 2,290 | 451 |
| 72139120 | CHQ STEEL WIRE RODS IN COILS ( HOT ROLLED ) (DIA 12.00 MM) (JIS G 3507 SWRCH 10 A) | 3,296 | 449 |
| 72139190 | STEEL WIRE ROD:SAE10B21 (11.0MM) | 18,605 | 451 |
| 72139910 | – | 2,984 | 451 |
| 72139920 | HOT ROLLED NON ALLOY STEEL WIRE RODS (GRADE : 11SMNPB30) D/DIA.21MM | 5,103 | 451 |
| 72139990 | HIGH CARBON STEEL WIRE ROD – GRADE 75MN4 – DIA 5.5 MM | 15,915 | 451 |
| 72141090 | HOT ROLLED NON ALLOY STEEL BARS DIMENSION : 90MM, LENGTH 7650-7750MM (50 CV 4) | 3,613 | 449 |
| 72142010 | – | 1,467 | 449 |
| 72142090 | MILD STEEL GRATINGS IN SELF COLOUR, WITHOUT GALVANIZING – SERRATED FLAT BAR 40 X 10 X 6070 MM | 1,57,146 | 451 |
| 72149910 | – | 60 | 449 |
| 72149990 | CARBON STEEL ROUNDS S20CB OF 70 MM & 80MM SIZES: 4M-5.8M | 17,479 | 451 |
| 72271000 | – | 269 | 451 |
| 72272000 | – | 2,533 | 451 |
| 72279010 | SPARES (PUMPSET VALVE SPRING UX380S ) | 4,768 | 451 |
| 72279020 | ALLOY SPRING STEEL WIRE RODS 54SICR6 | 425 | 451 |
| 72279030 | STEEL BARS GRADE 100CR6 SIZE; 34MM FOR MFG.OF BEARINGS(C-0.96,SI-0.31,MN-0.40,P-0.010,S-0.003,CR-1.48,NI-0.02,MO-0.02) | 4,637 | 451 |
| 72279040 | COLD HEADING QUALITY STEEL BARS GRADE AISI1045H SIZE 26X5800MM | 33,077 | 451 |
| 72279090 | STEEL WIRE RODS GRADE SAE1008B SIZE: 5.5 MM (HOT ROLLED RODSIN COILS OF ALLOY STEEL) | 6,93,479 | 455 |
| Total | 9,76,755 |
Quantity in MT, provisional data
Source: Custom data, SteelMint Research
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