China Steel Price More Competitive Due to Depreciation

According to statistics, in July this year, China’s exports of iron and steel rose 9.5% to 9.73 million tons, for six months, the highest in the first seven months of this year exports rose 27% to 62.13 million tons, at the same time set records. The world steel association, according to the seven months of exports as the world’s second largest steel producer of Japan’s national output. In addition, seven months China’s aluminium exports also rose 28% to 2.87 million tons.

China’s exports to increase at the same time, export prices all the way down. According to data show that last year China’s exports of hot-rolled coil prices fell 31%. The London metal exchange (LME) prices fell 24%.

Wall Street see article mentioned this week, because of the economic slowdown, China’s rise to global market steel supply, resulting in steel prices, steel corporate profits decline, and the international trade friction. Citi analysts expect, influenced by weak domestic demand, the future Chinese steelmakers are still excess capacity will be used in the international market.

Record by the bloomberg reports that China’s central bank yesterday lowered the yuan central parity rate, the RMB exchange rate decline is expected to be two days of record for 21 years, the yuan will let domestic steel and aluminium exports cheaper, was plagued by falling prices of other global producers might be more difficult situation.

India’s third-largest steelmaker JSW Steel Ltd., the chief financial officer Seshagiri Rao argues that China’s exports of iron and Steel “is disrupting the overall pricing, also interfere with the international market supply and demand situation as a whole. We have seen many trade action in different countries. I expect that this will create problems for the industry further, (India) imports will continue to increase.” India, according to official figures, within 4 months as of the end of last month’s Indian steel imports soared 58% to 3.5 million tons.

Wall Street see article summary of yesterday, the foreign trade export oriented benefit due to the depreciation of Chinese industry, textile, steel, shipping and auto industry enterprises are the main beneficiaries of the four major industry.