
According to the update from Shanghai Metal Market, a large number of aluminium die-casting plants across some of the provinces in China, including Sichuan, Jiangsu and Zhejiang witnessed a lower export order in the first quarter of the FY2018-19. The reason for the plunge in export orders is primarily attributed to the appreciation of yuan’s value against the dollar.

The yuan value in March was at 6.29, while in January it was hovering at 6.49. This month-on-month value appreciation resulted in affecting demands for Chinese products in foreign markets. The more the yuan value increased, the more the Chinese products lost advantages in foreign markets and aluminium plants’ profit margins from exports wore away.
The maximum impact of the yuan value rising was seen in the aluminium die-casting plants with short-term contracts, as compared to the plants with longer-term contracts.
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