Today, the central parity rate of USD/RMB increased by 630 points from the previous day to 6.9572, the highest since December 30, 2022, and the largest increase since May 6, 2022. Affected by the strengthening of the US dollar, the export price of Chinese steel products has been loosened to a certain extent. Some steel mills’ export quotations for Hot Rolled Steel Coil have dropped to US$640/ton FOB, with an April shipping date.

Recently, iron ore prices have been high, and the long-term steel export prices of Japan, South Korea and India are relatively high. SAE1006 Steel Coil are all above 700 US dollars / ton FOB, while the delivery price of local hot coils of Vietnam’s large steel plant Formosa Ha Tinh in April At $690/ton CIF. According to Mysteel, due to the obvious price advantage of Chinese resources, inquiries from customers in Southeast Asia, the Middle East and South America have increased today, and some orders have been completed.

In the near future, the possibility of two-way fluctuations in the RMB exchange rate has increased, which will largely bring many uncertainties to the import of raw materials and the export of steel products. Overall, before the Federal Reserve issued a signal to suspend interest rate hikes in the first half of the year, the RMB exchange rate may still remain volatile. However, as the Chinese economy is likely to enter an upward cycle in the second half of the year, the RMB may enter the appreciation channel.