Indian Domestic Re-bar Producers fear on Rising Import

Re-bar prices in Mumbai have corrected gradually on account of import from China at very cheap rates.

Domestic Re-bar units are already facing very low demand with slowdown in construction and industrial activity. In addition, Re-bar imports from China already in dent condition owing to decline in domestic Re-bar prices by almost INR 1,500-2,000/ MT in July, 2014.

“The first lot of 66,000 MT Re-bar is going to be landed in Mumbai & Chennai port in  few days and many more lots to be arrived in the upcoming months,” according to one of the importers at Bangalore.

Another importer based in Mumbai confirmed, “I am expecting 10,000 MT Re-bar in 1^st week of August in Mumbai port.”

Chinese exporters have claimed 14% subsidy from the government by categorizing it to alloy steel by mixing small quantity of boron (alloy that increases harden ability), Mumbai based importer further added.

Re-bar Price Comparison of China & Mumbai

Note: Basic prices in INR/MT; Excise duty& local VAT/CST extra
USD 1 = INR 60

BIS Norms on Imported Re-bar

Re-bar manufacturers in India says, “Only Non-alloy (Ribbed) Bars above 12 mm are regulated / governed imported under  72.14 by the 2^nd Quality Control Order of BIS notified to DGFT (no submission of import duty till ISI mark is shown). Below 12 mm will be effective from 1^st October, 2014 that can’t sold/stored/distributed without BIS 1786 approval.”

Industry sources says, as per the new BIS guidelines, all foreign & domestic producers cannot import, manufacture, store for sale or distribute steel and its products, which do not conform to the standards or do not bear the standard mark (ISI Mark).

What Precaution for Construction Industry?

A Re-bar trader based in Mumbai said, “China TMT will have to be sold as other Bars (under Alloy Steel grade) are not allowed under Ch 72.14 (Excise Chapter for TMT) because of BIS 2^nd Quality Control Order on it. Also, builders/architects will have issues accepting an Alloy grade TMT Bar, which does not conform to IS 1786 as it is mandatory construction use in India”.