Falling Yuan Becoming a Threat to Global Commodities Prices
- Weak currency is depressing Chinese raw materials demand
- It’s potentially a major headwind for iron ore and soybeans
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Add the rapid drop in the value of the yuan to the litany of challenges facing global commodities prices.
China, the biggest importer of many raw materials, has already seen demand slacken as virus curbs, a property crisis and power outages over the summer hammered economic activity. And while higher energy costs due to the war in Europe are keeping global prices buoyant, consumption is falling as the world economy slows.