How does the situation pan out in India for Indian Steel companies?
India right now is the anomaly in global steel industry. Basically steel demand is flat, maybe up a little bit versus a drop outside of China of 30% or more in many cases. The Indian rupee has been weak, which has brought down cost on the dollar basis. Many Indian companies have their own iron ore mines, an access low cost iron ore. A number of the companies buy coking coal from Australia, and this price is already down about 60%. So the Indian companies have low costs and good enough domestic market to maintain their production. They can export due to their low cost and make some profits so the Indian steel right now is the best positioned in the globe at the current time.
