Rebar import from China is rising continuously in Indian coastal region and this trend is likely to follow in near-term. As per sources, trader in Mumbai is offering Chinese Rebar (12 mm Fe500) at INR 33,700/MT.
Mumbai market is witnessing slowdown in Rebar demand from last week as domestic price tumble down by INR 1,000/MT. Sources confirmed that Chinese Rebar has also entered into the market as few leading distributors are offering Fe500 (12/16/20/25 mm) at INR 33,700/MT and Rebar of size 10/32 mm at INR 34,100/MT (basic price, Excise & VAT extra).
Price Difference of Imported & Domestic Rebar (12 mm)
|
Particular |
China |
Mumbai |
|
Basic price |
33,700 |
34,000 |
|
Excise @12.36% |
4,165 |
4,202 |
|
Excise including |
37,865 |
38,202 |
|
VAT@ 5% |
1893 |
1910 |
|
VAT including |
39,758 |
40,113 |
Prices in INR/MT as on 14 Oct, 2014
According to one of the traders at Mumbai,” Rebar is being imported at below domestic price by around INR 400-500/MT in the market. It is expected that around 5,000-7,000 MT is going to arrive in the current month, which may again pull down the prices.”
According to one of the traders at Chennai, “Traders here are very cautious of buying imported Rebar product. However, big infrastructure companies are directly importing for their own consumption.”
Inspection Certificate: As per Inspection Report with SteelMint, Chinese Rebar has following chemical composition:
- Sulphur: 0.014-0.033%
- Phosphorous: 0.026-0.029%
- Elongation: 22.22-24%
Chinese Steel Export surge in Sep’14
According to one of the media report, Chinese steel export surge in September to 8.5 MnT pa; up by 73% Y-o-Y and by 9.8% M-o-M. In the first three quarters (Jan to Sep’14), exports have touched to 65.3 MnT pa; up by 39% from the previous year.
Import of Bars & Rods increases in India
According to recent data by Joint Plant Committee, total import of Bars & Rods (alloy and non-Alloy) has increased by 23% in Aug’14, which stands at around 1,08,490 MT as compared to previous month.
Import of Bars & Rods (Alloy & Non-alloy Steel) from Apr’14 to Aug’14
|
Bar and Rods |
April’14 |
May’14 |
June’14 |
July’14 |
Aug’14 |
Apr’14-Aug’14 |
|
Alloy Steel |
21,700 |
32,000 |
8,160 |
14,380 |
44,040 |
1,20,280 |
|
M-o-M Change |
47% |
-75% |
76% |
206% |
|
|
|
Non-alloy Steel |
27,320 |
32,080 |
45,870 |
73,580 |
64,450 |
2,43,300 |
|
M-o-M Change |
17% |
43% |
60% |
-12% |
|
|
|
Total Import |
49,020 |
64,080 |
54,030 |
87,960 |
1,08,490 |
3,63,580 |
|
M-o-M Change |
31% |
-16% |
63% |
23% |
|
Source: Joint Plant Committee
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