India: Re-bar Imports from China to touch over 0.2 MnT

Increasing Re-bar imports from China creates a big challenge for Indian secondary steel sector. It is anticipated that imports will touch over 0.2 MnT pa in the next couple of months.

Maharashtra Steel Re-rollers Association had sent a letter to customs department in order to check rising imports of Re-bar that do not match Indian standards.

“Re-bars from China, which are wrongly classified as alloys grade Bars, was imported without proper BIS certification as per IS 1786: 2008 that is mandatory for use of Re-bars in construction industry.

As it is known that Rolling Mills in India, which are producing non-alloy steel (Ribbed) Bars under Excise Chapter 72.14 are governed by Quality Control Order (2^nd amendment).  All bars of 12 mm and above have to be mandatory certified and approved under IS 1786:2008 for use in construction industry since 31 Mar, 2013. Also, below 12 mm will have to be 100% certified from 1 Oct, 2014,” said Mr. Kamal Gupta, general secretary, Maharashtra Steel Re-rollers Association.

Indian secondary steel sector is struggling for survival. Along with this, rising imports have became last nail in the coffin. If sources are to be believed, current imports of finished steel are taking place at below USD 500/MT CIF India, which is lower than Billet prices in any part of the world.

Vice President of Madras Steel Re-rollers Association, Mr. Sanjay Aggarwalla said that there is 13% export rebate on alloys steel Bars from China, which are helping Chinese manufacturers to reduce prices further by almost USD 65/MT (about INR 4,000/MT) and are dumping Re-bars in India by calling it as alloy steel Bars.

He further added, the Chinese mill test certificates are classifying the goods as high tensile deformed steel Bars as per BS 4449 (British Standards for Construction grade Non-Alloy Steel bars), but still the importers and Chinese mill owners are misleading the officials of Central Excise & Customs Department by wrongly classifying the non-alloys steel Bars (in Ribbed form) as alloy steel Bars and are getting away with Quality Control Order by paying import duty of 5% under Excise Ch 72.28 instead of Excise Ch 72.14 .

Kandla port in Gujarat has already offloaded a bulk quantity of35,000 MT in July and expected to import some more quantity. Chennai & Mumbai ports are already receiving few vessels, he further added.

Currently, the market is in a panic situation and domestic Re-bar manufacturers are in pressure owing to rise in Re-bar imports from China.

Bar & Rod Imports on Major Ports