Decline in ruble raises threats for Indian steel makers

NEW DELHI (Scrap Monster): Indian steel making companies like, Tata Steel Ltd, JSW Steel, and also Steel Authority of Indiahad planned an increase in their production, supported by the central government’s push for the faster production and also faster gain in Indian economy. Some of the domestic buyers in the country, are opting Russian alloys than the Indian made steel, as a result of the 47 percent decline in the value of the ruble against the value of the dollar in the previous year.

The Senior Vice President of JSW Steel, Mumbai, Sharad Mahendra, stated that, in the past few months the Russian imports of steel was benefiting from the domestic market of the country. He also added that, if the imports fro Rusia are not kept on hold, such purchases will increase.

The overseas markets of India, like, the Middle East, and also many others prefer Russian steel over the Indian made steel products, which is an addition to the Indian exporters which includes the increasing pressure from the hike in the Chinese shipments of steel. The biggest energy exporter in the world, Russia, is at present facing a recession after the decline in the price of oil, and also the imposition sanctions by the United States, which applies the pressure on the ruble.

The decline in the economy of world’s fifth largest steel exporter in the world, would make things easier for the Russian steel mills. In the year of 2013, the country produced about 69 million tonnes of steel and from it the country exported 34 percent outside the country, according to the reports from the World Steel Association. India is placed as the fourth largest steel producing country.