SteelOrbis Shanghai
Influenced by the falling US dollar in the international market, the central parity rate of China's RMB has broken the 7.6 barrier, standing at 7.5951 RMB to one US dollar on July 3, 2007. The RMB has gained 124 basis points from Monday's reference rate of 7.6075 against the dollar.
After the Chinese government limited steel exports through the imposition of new tariffs, the current levels of China's steel export quotations are relatively close to the international market level. In this context, the exchange rate has become a very important factor with a significant impact on exports. Taking common carbon products as an example, when China's currency appreciates by RMB 0.01 against the US dollar, the export cost will rise by US$0.6 or so.