Total Re-bar Import to India crossed over 50,000 MT

Imported Re-bars from China constitute major portion in Indian Re-bar imports, as compared to other countries. India imported around 52,000 MT of Bars & Rods during Apr’14 to Aug’14, out of which 60% was contributed by Chinese origin.

The domestic Re-bar mills are already running in doldrums situation owing to slowdown in the construction activities and tight cash in market. Adding to the present crisis, Re-bar imports, especially from China is capturing domestic market of primary & secondary Re-bar mills.

In Aug’14, import to India has increased significantly by 180% (M-o-M) with total August imports touching 24,000 MT. Majority of its import, which is around 70% was contributed by China.

Significant imports of Re-bars will majorly hamper domestic markets based in coastal areas such as Mumbai, Kandla, Vizag and Chennai. According to SteelMint survey, Maharashtra has Re-bar capacity of 4.2 MnT pa, despite major units there, are running at single shift owing to low conversion spread and less demand. Similarly, Gujarat has capacity of 1.4 MnT pa and Tamil Nadu has capacity of 2.6 MnT pa.

According to sources, a vessel carrying around 7,500 MT of imported Re-bars is expected to arrive at Mumbai port in coming week.

Bars & Rods imported from China majorly contributes to alloy Bars & Rods segment of the country, if compared to non-alloy based category.  According to below given data alloy based Bars & Rods from China constitutes more than 90% of the total alloy Bars and Rods imports.

Bars & Rods (Alloy & Non-alloy) Import in the last 5 Months 

Source: SteelMint Research
Provisional data, Qty In MT