Yuan devaluation will squeeze minor metals prices

Minor metal producers in China will gain cost benefits from Tuesday's currency devaluation, making them more competitive and putting further pressure on global prices, market participants said.

Those producers whose outgoings, such as raw materials and staff costs, are in yuan and whose final product is priced in dollars, will be able to offer much more competitively than others who may have both costs in dollars. “We buy our raw material in China in yuan and export in dollars,” one minor metals producer told Metal Bulletin on Tuesday August 11. “[Who gains will] depend on how domestic suppliers want paying...

Published

James Heywood

August 11, 2015

18:01 GMT

London