China is the world’s major producer of aluminium wire rod followed by India supplying together about 67% of the global aluminium wire rod usage. India’s share of the global wire rod market is expected to increase from 18% in 2017 to about 23% in 2025. The aluminium wire rods are then used as raw material for making aluminium wires, cables and overhead conductors that yield excellent mechanical and electrical cable properties.
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However, despite being the second largest producer of aluminium wire rod, the country is recently flooded with import of aluminium wire rod from China and the south Asian countries and also by the import of aluminium wire, the finished product. As a result of the simmering US-China trade conflict, India has faced a flood of imports of an array of aluminium products including aluminium wire rods.
When we look at the import data for aluminium wire in 2018, we see solid growth in import in the first two quarters of 2018. India imported about 20,837 tonnes of aluminium wire in Q1 2018 and about 15,079 tonnes in Q2. This makes the total import in the first half of CY2018 stand at 35,916 tonnes.
While we look at the data from India’s department of Commerce, we see that for the period of April to September 2018 or the first two quarters of FY 2019, India’s import of aluminium wire (non-alloyed) stands at 42,613 tonnes, which registers a growth of about 184% from the same period of FY 2018 when the volume stood at 15,026 tonnes.
In the month of September 2018, India’s aluminium wire import stood at 7,368 tonnes, up 116% from 3,403 tonnes in September 2017. In the FY 2018 India’s aluminium wire import stood at 50,513 tonnes. Looking at the six month's data, India is expected to import about 85,000 tonnes of aluminium wire in FY 2019, registering a growth of about 68%.
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