On August 13, the People’s Bank of China (PBOC) announced a devaluation of the Chinese currency for the third straight day, devaluing by 1.6 percent to RMB 6.4010 against the US dollar compared to the official rate of RMB 6.3306 on August 12. In addition, on August 13 the Chinese currency was devalued to RMB 7.1010 against the euro, RMB 9.9548 against the British pound, RMB 4.6966 against the Australian dollar, and RMB 4.9271 against the Canadian dollar, respectively compared to RMB 6.9481, RMB 9.8499, RMB 4.6225 and RMB 4.8355 on August 12.
Market insiders have stated that the devaluation of China’s currency will increase the cost of purchasing imported iron ore. However, they also said the devaluation will decrease finished steel export prices, which in turn will boost China’s finished steel exports in the coming period.