China Rebar Import Update: Clearance hurdles for Rebar Import to India

As per Madras Re-Rollers Association and sources close to the issue in Maharashtra confirmed that around 15,000 MT Rebar has been landed in three major Indian ports viz. Mumbai, Kochi & Chennai. However, these are not cleared by the custom & port authorities till now.

The domestic steel manufacturers have now raised voices collectively to fight against the dumping of cheap Rebar from China, which do not match the BIS Standard at different Indian ports. Earlier, Maharashtra Rebar Association had also written to government official to check China’s Rebar import quality.

Three consignments of Rebar are landed at three different ports – 7,500 MT at Mumbai, 5,000 MT at Kochi and 1,500 MT at Chennai.  The same consignments have been wrongly declared as ‘Deformed Alloy Steel Bars’ on the basis of 0.0008% boron in their composition. 

Sources close to this issue in Maharashtra have confirmed that there has been directive issued from Steel Ministry on 19 Sep, 2014 to the Board of Customs. The circular has been given to all the Commissioners of Customs (imports) in India that no TMT/Ribbed bars used in reinforcement concrete will be allowed to import as alloy steel bars and that all such ribbed bars have to be imported under 7214 /7213. Along with this, they have to follow the norms under Second Quality Control Order of BIS as notified with DGFT.

Importer, who asks for anonymity said, “Boron addition to Rebar does not impact the quality of Rebar and it can used for construction activity. Imported Rebar is of superior quality than domestic secondary Rebar.”

SteelMint learned that Rebar import from China is a matter of cheaper price and misdeclaration (alloy steel instead of non alloy steel). However, Re-bar import is legal and is brought after paying all taxes & duties.

Mr. Sunil Patodia, Vice President, MSRA, said in a press release, “There is a need to look into the matter of misdeclaration of these deformed non-alloys steel bar imports to India from China. We urge an independent inquiry/inspection of the Rebar imported and stocked at the Chennai port under the disguise of alloy steel bars. If not, this will result in huge revenue loss to central and state government.”

Safeguard Duty on Rebar Import

The government is planning to levy safeguard duty on the rising cheap imported Rebar especially from China & Korea to protect the domestic manufacturers.

 As per the media, SAIL Chairman, CS Verma on 18 Sep, 2014 stated that China is exporting a category of TMT bars, used mostly by the realty sector and its producers are availing lower duty and export benefits.

He also added, Asian countries such as Thailand have already taken measures to contain Chinese exports and it is time; India did so too.

China Rebar Import cheaper by INR 1,000-1,500/MT

According to the sources, Chinese Rebar imported into India at around USD 480-520/MT CNF (equivalent to INR 34,000/MT basic including 5% import duty, ED & VAT extra) after consideration of 13% export benefits by China that offers for alloy steel. Whereas, currently domestic Rebar prices in Mumbai & Chennai for 12 mm are at INR 35,200/MT and INR 36,000/MT respectively (ex-plant; Excise & VAT extra).

Port-wise Detail of Bar & Rod Import into India in Sep’14

Source: SteeMint Research
Provisional data till 20 Sep, 2014

Country-wise Detail of Bar & Rod Import into India in Sep’14

Source: SteeMint Research
Provisional data till 20 Sep, 2014