India: Rebar exports fall over 65% m-o-m in Apr'22

India registered a sharp 65.52% m-o-m fall in its rebar export shipments in April 2022. The volumes stood at 15,957 tonnes (t) in April 2022 as against 46,283 t in March 2022, as per customs data collated by SteelMint.

Taiwan largest importer

Taiwan emerged as the largest importer of rebar from India in April 2022 with 2,873 t. Export volumes witnessed a sharp rise of 101% m-o-m as compared to 1,428 t in March.

Maldives acquired the second position among the top importers in April 2022 with 1,663 t (down 9%) followed by the United Arab Emirates (UAE) and the Netherlands with 1,082 t (down 4%) and 1,047 t (up 423%), respectively.

Factors that weighed down Indian rebar export bookings

• Absence of fresh overseas inquiries: The Indian rebar export market remained silent in April as the key importing nations held themselves back from placing fresh inquiries. As reports suggest, buying interest was thin in Singapore with market participants bearish about the rebar market. Also, exports to Hong Kong remained absent due to a preference for Middle East materials.
  
  
• Higher domestic realisations: SteelMint's BF-route rebar (12-32mm) price rose to INR 72,000/t ($927/t) exw-Mumbai in mid-March 2022 from INR 62,000/t ($798/t) in mid-February 2022. Prices rose further to INR 72,500/t ($934/t) towards end-March. Improved demand along with the cost-push amid soaring coal prices resulted in the price hike. On the other hand, SteelMint's price assessment for Indian rebar exports (10-40mm, BF route, B500B) stood at around $783/t and $890/t CFR Hong Kong on an actual weight (AW) basis in mid-February and mid-March 2022, respectively, which is comparatively lower than domestic prices.
  
  

Exports down y-o-y in Jan-Apr'22

Exports of the material from India in January-April, 2022 stood at 168,698 t, a fall of 48% compared to 325,996 t in the same period last year.

On a yearly basis, Hong Kong was the largest importer of rebar with 71,128 t in the period under review followed by Singapore and Maldives. Exports to Singapore stood at 25,740 t and those to the Maldives at 7,069 t.

Outlook

Notably, Indian mills have not been active in the rebar exports market of late due to better realisations in the domestic market. However, the recent price corrections in the domestic market and the approaching monsoon may slow down construction steel demand in the country. This will most probably force Indian mills to allocate their materials in the export market to liquidate their piled-up inventories.