China's steel products significantly affected by exchange rate factors

January 13, day care congenial research report released by the exchange rate of the steel industry in China influenced by the more obvious impact. Reported that by the end of February 2009 there will be Ukraine and other countries or regions volume 300,000 tons of hot-rolled to enter the Chinese market, accounting for the domestic hot-rolled to 5% per month. December 2008, Shanghai, Taiwan has started selling hot-rolled vol.

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     Compare prices from the international market, China market price of hot-rolled plates Volume 609 U.S. dollars, while exports of the Commonwealth of Independent States 430 U.S. dollars, down from 29.4% of China's market price. In addition, the import market in the Middle East and Southeast Asia, imports of hot-rolled plates Volume market prices far below market price in China. Great price of steel products in China, not only in the international market is losing its competitiveness, even the domestic market also suffered a blow. Days congenial Gu believes that the exchange rate factor is the impact of steel imports of the main reasons for the domestic market. Since 2008, the sharp currency depreciation in the Commonwealth of Independent States. By the end of 2007 to January 2009, Ukraine's currency relative Grivner 36.6% depreciation of the dollar, the yuan has appreciated against the dollar and 6.8%. If you remove the exchange rate factors, China's steel products steel products vis-à-vis Ukraine, has obvious cost advantages. However, the sharp appreciation of the effective exchange rate of Renminbi, China's production of steel products in international markets declined significantly.