By Paul Ploumis 12 Aug 2015 Last updated at 01:58:33 GMT
SEATTLE (Scrap Monster): The devaluation of Chinese currency against dollar is likely to boost steel exports out of China, noted American Iron and Steel Institute (AISI). In a press release issued by Thomas J.Gibson, President and CEO, AISI, the association noted that the decision by the Chinese administration is a clear indication of the government’s active role in manipulating the country’s currency in order to create a favorable export market for their products.
AISI urged the government to address the massive damage caused by China’s undervalued currency to the US manufacturing sector and in particular to the country’s steel industry. According to AISI, the decision will make Chinese exports more competitive and at the same time thwart imports into that country. It also quoted the U.S. Treasury Department in saying that the Chinese currency remains “significantly undervalued”.
Incidentally, Chinese authorities had devalued the renminbi (yuan) following sharp slowdown in country’s economic growth and a slump in country’s stock markets. The Chinese central bank lowered the value of its currency by nearly 2% against the US dollar. The devaluation is considered as the largest since 1994, when the country had introduced modern exchange-rate system.
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 19 member companies, including integrated and electric furnace steelmakers, and approximately 125 associate members who are suppliers to or customers of the steel industry.