The sharp fall in the value of ruble has made Russian steel cheaper, and has forced Indian steel makers to lower their prices.Rather humorous that the fall in the ruble has made Russia much more competitive and is helping Russian industry (especially arms), while it is also shifting Russian imports away from Europe to the emerging world.
Russia and India Report
Ruble fall a blow to Indian steel
2 comments:
Exporters need to export. When you artificially remove the exporters things adjust, and new exporters arise.
Because getting sales is hard, and if anybody is stupid enough (hello EU, USA) to leave an open door unsurprisingly enterprising traders from the rest of the world rush in.
You'll note the roof hasn't fallen in on Russia despite the best attempts of the Russian Central Bank with its ludicrous interest rate response.
If they will take lower amounts of foreign currencies for their oil why would they not also take lower amounts of foreign currencies for their steel.... or anything else they export...
Neil, I think the high rates are helping via fiscal.... they should keep them up at 15 for now imo... equities over there seem to have bottomed if the politics/war chaos is removed...
rsp,
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