Final Thoughts

I read two articles recently regarding the impact of the devaluation of the India rupee against the U.S. dollar. One article (IHS Global Insight) discussed the metallurgical coal markets as the Indian steel mills have pulled back from the market as their costs spiral out of control. According to IHS Global the Indian currency lost 17 percent of its value in the South African coal markets during the month of August alone.

The Economic Times out of India reported JSW Steel (Jindal) plans on exporting 3 million metric tons (3.3 million net tons) during this fiscal year. The reason is tied to the drop in the value of the rupee against the dollar and how that has made Indian produced steel less expensive in the world market. Last year, JSW exported 1.9 million tons last year (2.09 million net tons). The article mentioned the U.S. as one of the target markets.