The Chinese yuan's recent losses against the US dollar has pressured steel prices in Asia to move down, with continual drops for both flat and long steel products across the region.
Traders in the region have dropped prices in a bold move to sell more cargoes before the currency further loses value. Some market participants are betting on more price drops, entering into bigger short-selling positions in the past week while trying to boost trading margins. Other market participants expect more currency devaluations to come while China defends its economy against tit-for-tat tariffs by encouraging exports and cheaper domestic goods. This has allowed bearish sentiment to creep into the US-dollar markets in China and Southeast Asia.Hot-rolled coilThe Metal Bulletin fob China hot-rolled coil (HRC) index began to decline on June 26 once the effects of the yuan's devaluation were felt across the steel markets. The index fell from $596.25 per tonne fob China on June 25 to $589.69 per tonne fob China...