With the virus creating uncertainty for economies worldwide, investors’ preference for haven assets, such as the US dollar, during this period presented additional headwinds for both steel importers and exporters.
Although a depreciation in the yuan allowed suppliers to reduce their asking prices to improve their competitiveness in the export markets - where transactions are typically settled in dollars - the weakening currencies of importing nations partially negated this,
market participants said.
The Chinese currency was pegged at 7.0328 yuan per $1 on March 18, compared with 6.9612 yuan to $1 on March 11, according to China’s State Administration of Foreign Exchange.
In comparison, the Brazilian currency was...