Influence of CHINA YUAN Devaluation on Import and Export of Prepainted Galvanized Steel Coil

In fact, there are many factors that affect the import and export of steel. Macro government policies, industrial policies, and fundamentals of supply and demand at home and abroad will all have an impact on the import and export of steel. It is difficult to make a comprehensive and objective analysis from the perspective of exchange rates. Therefore, aside from other factors, we only analyze the impact of CHY depreciation on the import and export of prepainted galvanized steel coil.

The impact of CHY depreciation on domestic steel imports and exports is mainly in two aspects:
One is to increase the competitiveness of finished product exports, because the same amount of domestic steel will be cheaper after pricing in US dollars;
The second is to increase the cost pressure of raw material imports. Because of the high domestic dependence on iron ore and coal imports, it is difficult for the price of raw materials to drop sharply in the short term under the background of global inflation, and steel companies will bear the corresponding production costs.

Although CHINA YUAN has started to depreciate, the export impact of prepainted galvanized steel coil is uncertain. For foreign buyers, more attention should be paid to the domestic market and purchase according to market demand.