Oil's Slump Hands Profits to Russian Steelmakers as Ruble Slides
- Dollar revenues curbing ruble costs dropping faster than steel
- Gains may be temporary as worsening economy curbs local demand
Ruble Low Good for Commodity Companies: Deripaska
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Slumping oil prices that are starving Russia of export revenue, and pushed the ruble to a record low this week, are boosting earnings for the nations’ steelmakers -- at least for now.
Novolipetsk Steel OJSC, Russia’s largest producer, and Severstal PJSC are benefiting as their costs in rubles fall relative to dollars they get from sales abroad, according to BCS Financial Group and Deutsche Bank AG. While steel prices have tumbled amid a global glut, the ruble is sinking even faster as the slide in oil to a 12-year low hurts the economy.