India’s steel pipes and tubes manufacturer Ratnamani Metal expects little impact from the change in China’s export policy. The company’s net profit increased by 1.4pc to Rs504mn ($6.78mn) in Q1 despite a 9.4pc slip in consolidated revenues to Rs5,260mn. The second wave of COVID-19 subdued Industrial demand in the domestic market in April and May, which lowered sales dispatches in Q1.
Ratnamani’s CMD Prakash Sanghavi said India’s strict Bureau of Indian Standards (BIS) certification norms have almost stopped imports of high-grade stainless pipes into India from September 2020 onwards. He was speaking on the impact of the cancellation of tax rebates on steel exports in China in the earning conference call. As per BIS regulations, officials have to visit the manufacturer’s facilities for the certification process and due to the COVID-19 situation, BIS certification officials could not inspect Chinese mills.
Also, Chinese producers are not inviting BIS officials. It will take more than a year or two for overseas suppliers to get BIS certification and most steelmakers are focusing on the domestic market. In China, the petrochemical sector is expanding rapidly, which is also one of the factors that led to China’s withdrawal of export tax rebates. Also, China is mulling to impose export taxes, added Sanghavi.
Ratnamani Metals and Tubes manufactures stainless steel and carbon steel pipes and tubes of various grades for use in oil and gas, petrochemical, pharma, defence aerospace and other sectors. The company has an annual capacity to produce 20,000mt of welded stainless steel pipes.