Slumping Yuan Threatens More Gloom for World’s Metals Producers
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It’s just what global producers of steel and aluminum didn’t need: a yuan devaluation that makes the flood of exports from the world’s biggest producer even cheaper.
China’s shipments of steel and aluminum, used in everything from fridges to skyscrapers, surged to a record this year as the slowing economy created a domestic surplus with nowhere else to go. The surprise move by the central bank, which spurred the biggest two-day slump in the yuan since 1994, makes the products even cheaper, threatening more pain for world rivals struggling with lower prices.