Import of wire products, on which the Indian government imposed MIP, fell sharply in Apr’16. Meanwhile, import of bar and rod down by 8%.
As per customs data available with SteelMint, import of wire fell sharply by about 50% to 29,300 MT in Apr’16 as compared to previous month under the same chapter/HS code 7227, on which government imposed MIP in early Feb’16.
Meanwhile, total bar and rod import to India had fallen by about 8% in Apr’16 as compared to previous month and stood at 0.10 MnT. Out of these, import from China was about 61% in the duration.
The major concern for Indian long steel producers was bulk import of wire rod before implementation of MIP than the import of other long steel products like rebar.
Due to shortage of material faced by downstream wire industry in market, Steel Wire Manufacturers Association of India had filed a petition against MIP imposed on wire rod in the Delhi High Court in mid Mar’16.
After two hearing held in Apr’16, finally, the Delhi High Court had passed an order on 26 Apr’16 that MIP will continue on all steel products, including wire rod till the tenure completes.
Government imposed MIP on bar and rod under chapter/HS code 7213, 7214 and 7227 in the range of USD 449-455/MT.
Bar and rod import to India during Apr’15-Apr’16
| Month | Alloy BAR AND ROD(CH-7228) | Non Alloy – BAR AND ROD(CH-7214) | Non Alloy – BAR AND ROD-Coil(CH-7213) | Other Non Alloy – BAR AND ROD(CH-7215) | WIRE of alloy Steel(ch-7227) | WIRE of Non alloy Steel(CH-7217) | Grand Total | M-o-M Change |
| Apr’15 | 31,400 | 21,300 | 7,300 | 2,400 | 32,500 | 10,800 | 1,05,700 | |
| May’15 | 22,900 | 7,400 | 6,200 | 2,000 | 34,400 | 13,100 | 86,000 | -19% |
| June’15 | 37,900 | 24,000 | 9,100 | 1,800 | 73,800 | 11,400 | 1,58,000 | +84% |
| July’15 | 22,900 | 26,600 | 3,000 | 2,700 | 71,300 | 13,000 | 1,39,500 | -12% |
| Aug’15 | 34,100 | 12,900 | 3,400 | 2,300 | 1,07,500 | 12,000 | 1,72,200 | +23% |
| Sep’15 | 43,200 | 14,800 | 3,400 | 1,600 | 97,000 | 15,800 | 1,75,800 | +2% |
| Oct’15 | 62,300 | 35,500 | 7,800 | 1,000 | 1,22,500 | 14,500 | 2,43,600 | +39% |
| Nov’15 | 44,700 | 7,500 | 6,700 | 1,000 | 67,400 | 11,900 | 1,39,200 | -43% |
| Dec’15 | 34,500 | 28,500 | 6,500 | 1,300 | 56,200 | 11,900 | 1,38,900 | 0% |
| Jan’16 | 46,700 | 3,200 | 4,600 | 1,300 | 76,400 | 14,800 | 1,47,000 | +6% |
| Feb’16 | 36,800 | 23,700 | 3,200 | 700 | 65,200 | 15,800 | 1,45,400 | -1% |
| Mar’16 | 33,500 | 9,700 | 2,800 | 1,500 | 57,200 | 11,800 | 1,16,500 | -20% |
| Apr’16 | 41,300 | 18,300 | 2,300 | 3,000 | 29,300 | 13,300 | 1,07,500 | -8% |
| Apr’15-Apr’16 | 4,92,200 | 2,33,400 | 66,300 | 22,600 | 8,90,700 | 1,70,100 | 18,75,300 |
Quantity in MT, provisional data
Source: Custom data, SteelMint Research
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