Indian rupee fall by about 40 Paise over Iraq tension as the United States threatened military action against Islamist militants, who have taken towns and cities in Iraq, increasing concerns over its oil export.
Currently, Indian Rupee is trading at 59.74 per USD.
Brent crude oil hit a 9-month high near USD 115 a barrel. Experts believe that Indian currency may further depreciate if crude oil prices move up.
Falling Rupee will make Indian Scrap importers to cut their purchases. Scrap prices, which has recently come down by USD 4-5/MT, may decline further if Indian Rupee continues to fall. India’s crude steel production was at about 80 MnT in FY14, out of which about 15-16 MnT Scrap was consumed.
India is the one of the largest Scrap importer after Turkey & South Korea. India had imported roughly 4.5 MnT Scrap in FY14.
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