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Overview of the steel market and export market in November
2021-12-02 09:35
Monthly updates about steel market and exporting.
2021.11.01-2021.11.30, exchange buying rate US$ to RMB decreased in value from 1:6.38 to 1:6.36. Analysts argued that the Omicron variant would not have a major impact on China due to the country’s strict virus containment measures. The RMB has also been supported by a sustained corporate demand for the local currency and a growing trade surplus. RMB keeps strong in value in the short run.
Steel cost here in China decreased a lot since early Nov. to today at a relatively stable level. The winter heat supply and limitation to environment pollution did not cause cost increase. The coming winter Olympic held in Beijing also has limited influence to economy based on policy to encourage online live. Considering the Chinese government policy to control real estate industry price level, the demand for steel construction in Dec. may remain low and won’t be as good as the same period last year. While the home appliance and machinery industries make production stock and the automotive industry will continue to increase production as the chip shortage eases, therefore sheet demand in Dec. May increase. Considering the low demands and predicted cold winter, there may be still space for cost decrease. Some local buyers think price already decreased at a relatively low point and may have willing to buy stock. Keep watching, buying as requested.
End of the year is coming. Following Dec. comes Christmas holiday, new year holiday and Chinese lunar new year holiday at end of Jan. Fighting for the last month of 2021.
Edited by Grace Cai from Bestar Steel Co., Ltd
Monthly updates about steel market and exporting.
2021.11.01-2021.11.30, exchange buying rate US$ to RMB decreased in value from 1:6.38 to 1:6.36. Analysts argued that the Omicron variant would not have a major impact on China due to the country’s strict virus containment measures. The RMB has also been supported by a sustained corporate demand for the local currency and a growing trade surplus. RMB keeps strong in value in the short run.
Steel cost here in China decreased a lot since early Nov. to today at a relatively stable level. The winter heat supply and limitation to environment pollution did not cause cost increase. The coming winter Olympic held in Beijing also has limited influence to economy based on policy to encourage online live. Considering the Chinese government policy to control real estate industry price level, the demand for steel construction in Dec. may remain low and won’t be as good as the same period last year. While the home appliance and machinery industries make production stock and the automotive industry will continue to increase production as the chip shortage eases, therefore sheet demand in Dec. May increase. Considering the low demands and predicted cold winter, there may be still space for cost decrease. Some local buyers think price already decreased at a relatively low point and may have willing to buy stock. Keep watching, buying as requested.
End of the year is coming. Following Dec. comes Christmas holiday, new year holiday and Chinese lunar new year holiday at end of Jan. Fighting for the last month of 2021.
Edited by Grace Cai from Bestar Steel Co., Ltd
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