Currency exchange rates can make or break a steel trade, and with forex volatility in emerging markets expected to continue for the rest of the year, the Asian ferrous markets are likely to see more price fluctuations before the end of 2019.
These five currency pairs should be on your watch-list for the significant influences they could bring to bear on key global steel and ferrous scrap trade flows.1. US dollar-Chinese yuanThe US dollar-Chinese yuan exchange rate is expected to remain at a "new normal" of more than 7 yuan to $1, market sources have said recently, in light of the continuing US-China trade war.The yuan depreciated to 7.1417 yuan to $1 on August 26 from 6.7414 yuan to $1 on May 1 - before which the Chinese currency had a relatively stable exchange rate with the dollar - with the Chinese central bank expected to allow it to continue to depreciate, to cushion the effects of the trade war with the United States.The economic battle between the two global powers ramped up a notch after US President Donald Trump imposed more tariffs on $550 billion-worth of Chinese goods, after China said...