Bar and rod import to India surged in Aug’16 in spite of MIP extension.
China’s wire rod export offers have fallen by USD 10/MT in the last one week and stood at USD 360-365/MT, FoB main port.
Meanwhile, domestic prices for wire rod in Shanghai were assessed at around RMB 2,590/MT (USD 388). Offers were down by around RMB 50/MT( USD 8) in the last one week.
Prices for 5.5 mm wire rod in Raipur and Durgapur at INR 26,300/MT (USD 393) and INR 24,500/MT(USD 365) respectively. Prices are basic.
It is surprising that despite government’s MIP extension on 66 steel products on 4 Aug’16, import of bar and rod surged by about 54% in Aug’16 against Jul’16.
The major import of long product during Aug’16 comes under the classification/code 7228, which is not covered under MIP, as per the customs data mentioned in the table.
It is important to note that the government extended MIP on bar and rod under chapter/HS code 7213, 7214 and 7227 in the range of USD 449-455/MT which is valid till 4 Oct’16.
It is a major concern for the Indian government whether to continue MIP imposed or not considering import figures which are still at higher level in spite of imposition of MIP.
Bar and Rod Import to India since Apr’16
| Month | alloy bar and rod(CH-7228) | non alloy – bar and rod(CH-7214) | non alloy – 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 |
| Apr’16 | 41,300 | 18,300 | 2,300 | 3,000 | 29,300 | 13,300 | 1,07,500 | |
| May’16 | 40,300 | 22,000 | 2,200 | 2,200 | 20,600 | 24,600 | 1,11,900 | +4% |
| June’16 | 21,000 | 6,600 | 3,100 | 1,900 | 12,300 | 38,900 | 83,800 | -25% |
| July’16 | 20,800 | 13,900 | 1,500 | 700 | 12,000 | 5,000 | 53,900 | -36% |
| Aug’16 | 30,500 | 7,100 | 1,900 | 1,500 | 28,600 | 13,500 | 83,100 | +54% |
| Total | 1,53,900 | 67,900 | 11,000 | 9,300 | 1,02,800 | 95,300 | 4,40,200 |
Quantity in MT, provisional data
Source: Customs,SteelMint Research
Note: USD 1= RMB 6.66, 1 USD =INR 67
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