As per the data of ministry of steel, import of bar and rod (non-alloy steel) in July’15 slumped to 48,380 MT as against 52,500 MT in June’15.
GOI is trying to restrict imports from China and other CIS countries to benefit the local steel units. Weak domestic demand in China, accompanied by currency depreciation last month, has compelled Chinese exporters to offer material at cheaper rates. In the same period, INR has also depreciated against USD, offsetting the concerns.
Despite the attractive offers of imported material, the quantity being imported to India has fallen by 15,570 MT for the month of July. The main reason is the rumours of safeguard duty to be imposed by GOI on HRC and wire rods. This has also boosted the sentiments in Indian domestic market.
As a result of safeguard duty threat, import is anticipated to be low in the forthcoming months. The government had also hiked the import duty twice on both long and flat products by 2.5%.
Total imports of bar and rod declined by 11%. Quantity imported (including alloy & non alloy steel) stood at 129,990 MT in July’15 as against 145,560 MT in June’15.
Bar & Rod Import
| Month | Alloy Steel | M-o-M Change | Non-Alloy Steel | M-o-M Change | Bar and Rod Import (Alloy & non-alloy Steel) |
M-o-M Change |
| Jan’15 | 111,580 | -32% | 62,300 | -27% | 173,880 | -30% |
| Feb’15 | 155,590 | 39% | 47,800 | -23% | 203,390 | 17% |
| Mar’15 | 44,590 | -71% | 42,300 | -12% | 86,890 | -57% |
| Apr’15 | 52,200 | 17% | 58,170 | 38% | 110,370 | 27% |
| May’15 | 33,620 | -36% | 84,770 | 46% | 118,390 | 7% |
| June’15 | 93,060 | 177% | 52,500 | -38% | 145,560 | 23% |
| July’15 | 81,610 | -12% | 48,380 | -8% | 129,990 | -11% |
Source: JPC Steel Ministry
Global Rebar offers
|
Region |
USD/MT |
W-o-W |
| China export main port FOB | 302 | – 16 |
| CIS export FOB Black Sea | 370 | 0 |
| Mumbai 12 mm basic price (E.D& other taxes extra) | 432 | – 14 |
| Turkey Export Black Sea FOB | 385 | – 10 |
| Saudi Arabia import CFR Jebel Ali | 393 | 0 |
Global Wire rod offers
|
Region |
USD/MT |
W-o-W |
| China export (FOB main port) | 302-305 | -15 |
| CIS export (FOB Black Sea) | 380 | 0 |
| South East Asia (CFR) | 318 | -4 |
Prices as on 3 Sep’15
USD 1= INR 66.24
Source: SteelMint Research
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