InvestorQ : Why have steel companies like Tata Steel and JSW Steel been reporting higher steel demand from China in the last few months?
Debbie Mascarenhas made post

Why have steel companies like Tata Steel and JSW Steel been reporting higher steel demand from China in the last few months?

Answer
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Crowny Pinto answered.
3 months ago


Interestingly, while India has been fighting hard against Chinese exports, the latest numbers indicate a spurt in Indian exports of steel to China in the midst of the lockdown. China has emerged as the top buyer of Indian steel during the lockdown period. These have been confirmed by spurt in exports from Tata Steel and JSW Steel.

Indian export of steel to China grew by a whopping 76% and during the lockdown period China accounted for nearly 48% of all steel exported by India. Export of finished steel to China stood at 440,000 tonnes while that of semis stood at 1 million tonnes. China dominated Indian export of steel semis even as Vietnam led in finished steel.

This is the big shift in the lockdown. Chinese imports of steel from India used to be negligible in the past. The export of steel came as a face saver to most Indian companies after domestic steel demand crashed. For China it is more economical to directly import steel rather than import iron ore and coal at the current prices, as per industry sources.