Even After Trade Tensions, China Is Importing Steel From India - Made Largest Purchase In 5 Yrs

While many businesses have been hit during the pandemic, India¡¯s steel exports have reportedly more than doubled between April and July and hit their highest level in at least six years. This is because of a surge of Chinese buying.

Trade tensions between the two countries have been high since the Galwan valley face-off between the army of the two nations. While India is running a ¡®self reliance¡¯ or atma nirbhar Bharat campaign, it looks like Chinese buyers are importing steel from India in defiance of the tensions Beijing and New Delhi.

Just Dial

According to a Reuters report, traders said reduced prices had led them to the purchase as Indian sellers sought to get rid of a surplus generated by the impact of COVID-19 on domestic demand and generate much-needed income.

Its not clear whether the sales broke any rules but the China Iron and Steel Association is reportedly monitoring them.

According to the report, Steel companies Tata Steel Ltd and JSW Steel Ltd were among Indian companies that sold a total of 4.64 million tonnes of finished and semi-finished steel products on the world market between April and July. In comparison, 1.93 million tonnes was shipped in the same period a year earlier.

Also Read: Indian Government Bans More 47 Chinese Apps From App Stores In India

Representational Image/Reuters

Vietnam and China bought 1.37 and 1.3 million tonnes of steel of the 4.64 million tonnes. These Chinese purchases are the largest since data was first collated in the current form beginning with the fiscal year April 2015-March 2016, the report states.

Even though China, the world's leading steelmaker produces vast quantities, its still importing as it has ramped up infrastructure spending.

The report cites two unnamed industry sources, as saying that ¡®major Indian steelmakers offered a discount of at least $50 a tonne, selling hot-rolled coils and billets to China at $430-$450 per tonne against the $500 offered by most Chinese producers¡¯.

Representational Image/Reuters

Hot-rolled coils are usually used to make pipes, automobile parts, engineering and military equipment. More attention is being paid by China on the imports of hot-rolled coils.

¡®During the first four months of the 2020-21 fiscal year, China and Vietnam together bought close to 80% of India's total hot-rolled coils exports, the data showed, while the product constituted more than 70% of India's steel exports¡¯, states the report.

Meanwhile in India, people like Sonam Wangchuk have been calling for a large scale boycott of Chinese products.