Home » Weak yuan increases headwinds for commodity demand in China

Weak yuan increases headwinds for commodity demand in China

by archyde

Commodity and metal prices fell in China In light of the increase in pressure as a result of high dollarwhich increases the impact of concerns about the growth of China’s economy on the markets.

Tin topped the losses of the base metals traded in Shanghai, and declined copper Also sharply by mid-trading, it also fell oil prices In international markets, this was followed by a decline in the share prices of producing companies, as the largest listed oil company in the country recorded, “PetroChina(PetroChina Co.) and aluminum giant, China Hongqiao Group Ltd., both bottomed this year in Hong Kong.

The dollar rose against currencies to a record high, making China’s massive import requirements for materials, energy and food more expensive, and this is just the latest in a chain of headwinds for commodity demand in the country, which includes: government rules to achieve zero Covid, real estate crisis, and blackouts During the summer, weak export markets. China was forced to set the daily reference rate of the yuan below 7 yuan to the dollar for the first time in two years, in an attempt to slow the pace of the yuan’s decline, and it also raised the risk reserve requirements on foreign exchange sales.

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