Bar and rod import to India stood at about 0.14 MnT in Feb’16, out of which 70% of imports contribution from China.
As per customs data available with SteelMint, Bar and rod import to India was marginally down by about 1% and stood at 0.14 MnT in Feb’16, which was 0.147 MnT in Jan’16. China contributed 70% share of total import.
On 5 Feb’16, government imposes MIP in various steel products including Bar and Rod under chapter 7213, 7214 and 7227.
According to an importer “After imposition of MIP, imported Bar and rod became costlier by 30-40% due to which dealer and stockiest based in Mumbai and Gujarat sold thier material at high cost”
Post MIP, domestic price offers of Flat and Long steel products by primary steel manufacturers increased by INR 3,500-4,000/MT. However, impact of MIP in import will be visible from Mar’16.
Alongside,Chinese wire rod export offers are up by USD 15/MT in a week’s time. Currently, offers are assessed in the range of USD 290-295/MT, FoB main port.
Bar and rod import to India during Aug’15-Feb’16
| Month | Alloy BAR AND ROD(CH-7228) | Non Alloy – BAR AND ROD(CH-7214) | Non Aloy – BAR AND ROD-Coil(CH-7213) | Other Non Alloy – BAR AND ROD(CH-7215) | WIRE of alloy Steel(ch-7227) | WIRE of Non alloy Steel(CH-7217) | Grand Total | M-o-M Change |
| Aug’15 | 34,125 | 12,861 | 3,381 | 2,318 | 1,07,456 | 11,925 | 1,72,066 | |
| Sep’15 | 43,155 | 14,788 | 3,406 | 1,559 | 97,045 | 15,793 | 1,75,746 | 2.00% |
| Oct’15 | 62,271 | 35,470 | 7,760 | 1,035 | 1,22,524 | 14,494 | 2,43,554 | 39.00% |
| Nov’15 | 44,739 | 7,501 | 6,731 | 974 | 67,445 | 11,853 | 1,39,242 | -43.00% |
| Dec’15 | 34,466 | 28,527 | 6,499 | 1,288 | 56,229 | 11,852 | 1,38,861 | -0.30% |
| Jan’16 | 46,716 | 3,157 | 4,643 | 1,325 | 76,444 | 14,778 | 1,47,063 | 5.90% |
| Feb’16 | 36,835 | 23,669 | 3,237 | 669 | 65,210 | 15,799 | 1,45,420 | -1.10% |
| China’s share in Feb’16 | 28,039 | 446 | 38 | 143 | 60,926 | 10,838 | 1,00,430 | |
| Total Aug’15- Feb’16 | 3,02,307 | 1,25,973 | 35,656 | 9,168 | 5,92,353 | 96,494 | 11,61,952 |
Quantity in MT, provisional data
Source: Custom data, SteelMint Research
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