CHINA was the top foreign buyer of Indian steel between April and September, India’s government data showed Wednesday, marking a rare rise in bilateral economic activity at a time of political tensions that have triggered some trade curbs.

China bought 1.9 million tons, cornering 29 percent of India’s finished steel exports, which hit their highest in at least six years at 6.5 million tons, the provisional data showed.

With the Indian economy contracting because of the coronavirus pandemic, domestic demand for steel has been weak, and producers have been offloading their surpluses to Chinese buyers.

China, the world’s top steel consumer, has bucked the COVID-linked trend of sluggish global demand, supported by economic stimulus such as infrastructure investments.

The two countries are locked in their most serious military stand-off in decades following clashes at their Himalayan border in June.

New Delhi has also introduced curbs aimed at Chinese investments, but the measures do not affect Indian exports.

During the April-September period, India’s overseas shipments of steel were primarily hot-rolled coils, a flat steel product used to make pipes, automobile parts, engineering and military equipment.

China and Vietnam together purchased just over 75 percent of Indian hot-rolled coils, of the overall 4.49 million tons exported, data showed.

Indian steel consumption fell to its lowest in at least six years during the April-September period at 35.86 million tons, while finished steel production also fell by 25 percent to 38.6 million tons. (SD-Agencies)