China and Vietnam Pick Cheap Indian HR Steel, Tata and Jindal Lead Export Push

India's steel e ports more than doubled between April and July to hit their highest level in at least six years, boosted by a surge of Chinese buying in defiance of tensions between Beijing and New Delhi.

Traders said reduced prices had driven the purchases 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.

It was unclear whether the sales broke any trade rules, but the China Iron and

Steel Association said in a statement it was monitoring them.

Leading Indian 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.

That compared with 1.93 million tonnes shipped in the same period a year earlier, government data analysed by Reuters showed.

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

Neither Tata, JSW nor India's federal ministries of steel and commerce responded to emails seeking comment

Vietnam has been a regular buyer of Indian steel, but China's emergence as a leading buyer, replacing New Delhi's traditional markets, such as Italy and Belgium, is more surprising.

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.

Hot-rolled coils, a flat steel product, are mostly used to make pipes, automobile parts, engineering and military equipment.

The China Iron and Steel Association official told Reuters it was paying particular attention to 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.