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The renminbi continues to depreciate and the cost of imported yarn rises

by:Chengyi     2021-03-15
Recently, with the continued strength of the U.S. dollar and the expected reduction in my country’s foreign trade surplus, the RMB exchange rate has regained a significant adjustment. From April 18 to June 21, it has depreciated more than 1,900 basis points, which is the most sustained against the U.S. dollar in the past year and a half The longest and largest round of devaluation. On June 21, the onshore renminbi fell below the 6.50 round mark against the US dollar, marking the first time since January 11.   The continued depreciation of the RMB is undoubtedly good for my country’s export industry, but 'several companies are happy and some are worried,' and the cost of the import industry is undoubtedly increasing rapidly. For example, for every 200 basis points of RMB depreciation, the cost of imported yarn will increase by about 80 yuan/ton. If the RMB continues to depreciate, the imported yarn traders who have not settled before will not only 'cannibalize' their profits, but also face the risk of loss. Affected by this, traders have also increased the selling prices of imported yarns. The price of 21S yarn in India is about 22,000 yuan/ton, and the price of 32S yarn in India is about 24,200 yuan/ton. However, actual transactions are scarce and sales are slow. Due to the support of imported yarn prices, domestic yarn prices have also basically stabilized, with a small number of them rising slightly. Article Keywords:   Yarn Import
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