Monday, 28 Feb 2011 By Dow Jones
Dow Jones quoted an executive with one of China largest steelmakers said Yuan appreciation will benefit Chinese steelmakers as the total value of their imports, including iron ore and coking coal is larger than the value of steel exports.
The executive said China steel exports are still small less than 10% of domestic steel output, but China's imports of raw material for steel making are large especially iron ore.
According to data from the China Iron and Steel Association, China imported 618.6 million tonnes of iron ore at an average price of USD 128.38 last year. If the yuan were to appreciate by 5% against the US dollar from average 2010 levels, Chinese steelmakers could save USD 3.97 billion.
However, the executive said global miners including Anglo-Australian Rio Tinto PLC, BHP Billiton Ltd and Brazilian miner Vale SA may raise iron ore prices if the Australian dollar and Brazilian real also appreciate against the US dollar.
The executive said China steel exports are still small less than 10% of domestic steel output, but China's imports of raw material for steel making are large especially iron ore.
According to data from the China Iron and Steel Association, China imported 618.6 million tonnes of iron ore at an average price of USD 128.38 last year. If the yuan were to appreciate by 5% against the US dollar from average 2010 levels, Chinese steelmakers could save USD 3.97 billion.
However, the executive said global miners including Anglo-Australian Rio Tinto PLC, BHP Billiton Ltd and Brazilian miner Vale SA may raise iron ore prices if the Australian dollar and Brazilian real also appreciate against the US dollar.
Tags:steelmaking, CISA, Anglo American Plc,
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