While both the countries India and China are still deadlocked in an intense stand-off at eastern Ladakh. More troops are been deployed at the Indo-China border. Trade relation between both the country has hit a new low. But quietly a strange phenomenon is taking place.
China’s import of Iron Ore from India has seen arsing and stand the highest since 2012. While the reason behind the jump in the import of Indian iron Ores during 2012 could be different reasons. But now it looks like China stocking iron Ore for impending conflict in the region. Not sure why Indian Government officials are either clueless and might not be concerned over exporting an important metal used for defense purposes.
Iron Ore primarily converted into Iron. Iron has several purposes on its own and used in many applications. One of the materials derived is steel. The metal used for modern technology, industries, factories, automobiles… And the most importantly used for making defense equipment.
China not just masses its defense platform but also known for its cheap exports to countries like Pakistan. Pakistan is India’s primary irritant in the region. India and Pakistan as a long history of multiple wars. Today India is facing a conflict situation on both the front.
China in the meantime involved within Steel buying spree. In the first half of 2020, China’s import of Iron Ore stood at 547 Million Tons. In which India’s import stood at 20 million Ton.
The critical situation for the Indian government under the leadership of Indian Prime Minister Narendra Modi. The country is still suffering from the effect of the Corona Virus and the Lock-downs. The economy is contracting in four decades. Military expenditure has to be increased. Since the escalation began with China. And China imports Indian Iron ores in large numbers even with the ongoing tension.
China’s sudden spike in Iron ore imports has made Indian ore exporters rich and happy in corona times. Indian infrastructure with in the country is also allow as the demand gets weak for Indian steel. These factors allow India to export iron ores to Countries like China.
The positive side of making a profit by exporting iron ore to China is a welcome sign. But these iron ores will help Beijing to make more Steel for defense purposes and so used for the reconstruction works after a natural disaster or war aftermath.
India will be needing steel in larger numbers when demands grow in the country. And we might expect India to pay more price to buy Chinese steel products.
Indian Government should look into this issue and verify the demand increasing in China during a tense situation at all its border regions. India’s demand and production must be an overview. India should look for a new customer other than China. If conflicts escalate between both.
