Importing Re-bars from China has become a critical issue for the domestic Re-bar units, as it seems that material is not acceptable as per the BIS standard.
Domestic Re-bar units in Western regions especially Maharashtra are struggling owing to import of Chinese Bars at a very cheap rate. If it continues on a large scale, it may build pressure on domestic Re-bar units.
The Steel Re-rollers Associations of Maharashtra has submitted the objections letter to the various concerned department of Indian government to take immediate actions on the incorrectly classified material, as an alloy grade imported bars from China.
As per the China Quality Certificate with SteelMint, 350 MT ribbed Re-bar is being imported with BS 4449:2005 grade, which is wrongly imported in alloy category.
BIS Norms for Re-bars produce in India
Rolling Mills in India, which are producing Non-alloy steel (Ribbed) Bars under Excise Chapter 72.14 governed by the Quality Control Order (2nd Amendment), as regulated BIS, under which all bars of 12 mm and above have to be mandatorily certified and approved under IS 1786:2008 for use in Construction Industry since 31 Mar, 2013 and below 12 mm will have to be 100% certified from 1 Oct, 2014.
According to this new guidelines of Quality Control Order (2nd Amendment), all manufacturers, foreign or domestic, cannot manufacture, import, store for sale or distribute (Ribbed) Re-bars which do not conform to the standards and do not bear the standard mark of ISI Mark.
Long Products Imports in India
|
Country |
Apr’14 |
May’14 |
Jun’14 |
Jul’14 |
|
China |
10,647 |
19,311 |
9,472 |
17,052 |
|
Japan |
6,353 |
5,545 |
6,627 |
4,258 |
|
Malaysia |
1,567 |
1,598 |
1,897 |
2,827 |
|
Germany |
2,295 |
1,400 |
1,569 |
1,805 |
|
Others |
5,252 |
5,503 |
5,023 |
4,893 |
|
Total |
18,194 |
33,357 |
24,588 |
30,835 |
Source: SteelMint.com
Provisional Data
Impact on Local Re-bar Mills in case of increase in Imports
- Rebar Production will remain down
- New Increasing capacity will be halt
- Domestic Re-bar sales may decrease
- Domestic Re-bar price will remain under pressure
SteelMint spoke to one of the largest manufacturers of Re-bar in Mumbai (who asked for anonymity), “We had reduced our production to 50% from the last one month and running 12 hours /day owing to very low demand of Re-bar. We do not have any fresh order along with that our last few order are also cancelled. Fear of rising import is there in the market but builder are still cautious.”
As per the manufacturers based in Jalna, “All the manufacturers are running at one shift only owing to low conversion spread from MS Ingot to Re-bar. Rising import of low grade Re-bar is setback to industry, as we want to improve our grade, but low demand in China may dump their low grade Re-bar to our country.”
A bulk quantity lot (approx 35,000 MT) of Re-bar has already arrived few days back at Kandla port (Gujarat) by few private players and many more lots to be received in upcoming months, as per the sources.
Note: States such as Maharashtra, Gujarat (West) & Chennai (South) have the biggest fear of rising Re-bar import owing to geographical presence of seashore. As per the industry sources, Re-bar import in India may raise further in coming year.
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