May 27th news--In the recent month, the Fastener export is becoming more prosperous because of the influence of US dollar appreciation and domestic steel price going down.
From last month to today, the US dollar has experienced a surge of appreciation, which influences greatly the RMB exchange.
Today one China yuan can only exchange 0.1485 USD, and the currency exchange rate drops sharply, compared with 0.1573 USD at the beginning of last month.
At the same time, due to the Fed’s interest rate led to the steep devaluation of Australia, the export price of its iron ore is dropping accordingly. Amid the price decline of the international bulk commodity, the price of raw material such as iron ore, coke and ferroalloy drops too, which cause the the production cost of china’s steel companies falls rapidly.
However, the major reason is the low demand of the downstream. Because of the curb of the outbreak of the pandemic, almost all the factories and trade companies’ productivity and sales dramatically, which definitely affect the price of steel.
However to the fastener export business, it is good news. The amount of the export orders continuously increasingly. For example, the business orders grows two times , compared with last month. At the same time, the continuous RMB depreciation also increase the exchange earnings. Last week the leaders in our company held a meeting , inspiring the staff to seize this chance to gain more profit for our company. But the manager also pointed that RMB depreciatioon and the cutdown of the steel price is also two sides of a coin. When the situation comes to opposite some day, it will be a disadvantage for our business. We should pay more attention to it and try best to avoid the loss.
Post time: May-28-2022