The Impact of CNY Depreciation
Moderate depreciation of Chinese Yuan provide more opportunities to the expansion of steel export.
The continuous depreciation pressure of the CNY against the US dollar is expected to remain at a relatively low level in the short term, and fell below 7.17. Since the beginning of this year, exports of steel and steel consuming products have grown strongly in China. Therefore, it has driven the demand for total steel in China.
The rising import cost of steel smelting raw materials has supported the prices of steel products.
The moderate depreciation of the CNY not only enhances the export price advantage of steel and steel consuming products, but also increases the import cost of steel and steel smelting raw materials, such as increasing the import cost of iron ore, scrap steel, coking coal, etc., and raising the shipping cost of these goods, ultimately becoming the price support for steel.
