China Lithium Market Dynamics & Lithium Procurement Study

China Lithium Market Dynamics and Lithium Procurement Study

Battery Recycling Technology Understanding

Solid State Battery Market

   China Scrap Steel Quality Analysis 

China Scrap Steel Cost Curve

Home

Metal News

Agony and Ecstasy for Chinese Steel Firms from Currency Moves

SMM LME Metals Seminar 2025

Li-ION BATTERY China

APAC (10th) Stainless Steel Industry Conference 2025

2025 15th APAC TIN INDUSTRY CONFERENCE

3rd Li-ion Battery Europe 2025

2025 NET ZERO EUROPE - Solar & Energy Storage Summit

2025 SMM Europe & Africa Lithium Resources Field Trip

China May Hold Off on Electricity Price Increase, Ulrich Says 

BEIJING, June 30 -- The yuan appreciation is likely to have a negative impact on the steel industry in the short term despite lowering the import costs for iron ore, industry experts said on Tuesday.
&quot;However, the rising yuan will hit steel product exports, as well as exports from downstream sectors like electromechanical and metal products.&quot;
&quot;It's bad news for exports. We will have to bear the extra cost as it is difficult to pass on the same to customers for the sake of maintaining good relations,&quot; said a sales director from Anshan Iron and Steel Group.
China spent 343 billion yuan ($50.5 billion) to import 628 million tons of iron ore last year. A 3 percent increase in the yuan's value, would reduce the import costs by nearly 10 billion yuan, the experts said.
&quot;A revaluation would certainly be beneficial for iron ore imports,&quot; Luo Bingsheng, vice-chairman of the China Iron and Steel Association, said in a Dow Jones report.
However, from an export point of view, a 3 percent increase in the yuan and the removal of the 9 percent and 13 percent rebates on hot-rolled coil and cold rolled coil will reduce the competitiveness of Chinese steel products in the global market, said Zhang.
&quot;Most of Chinese steel products exported overseas are low value-added products and have been successful because of the price advantage. Hence it is difficult to pass on the additional costs to the exporting countries, &quot; she said.
The price of hot-rolled coil is around $600 per ton and a 3 percent increase in the yuan's value will increase prices by $20 per ton. That in turn, will mean additional costs of $400 million per year for the steel mills.
China exported 24.6 million tons of steel products last year. The country's steel exports almost doubled year-on-year in the first five months due to strong demand from Southeast Asia and South Korea.
Exports of Chinese steel products surged by 17.9 million tons in the first five months, up 127 percent from a year earlier, according to customs data.
Some industry insiders said the yuan appreciation will also push the steel industry to adjust restructuring moves and focus more on improving the technical value of products. 
&nbsp;

S.Korea Buys 200 T Tin at Higher Premium

agony-and-ecstasy-for-chinese-steel-firms-from-currency-moves

Agony and Ecstasy for Chinese Steel Firms from Currency Moves | SMM

Agony and Ecstasy for Chinese Steel Firms from Currency Moves

SMM Events & Webinars

SMM LME Metals Seminar 2025

Li-ION BATTERY China

APAC (10th) Stainless Steel Industry Conference 2025