What Impact did Trump Elected have on China's Steel Market?
The domestic steel market continues to triumph on November 9, compared to the steel market during the capital market surge performance, the overall spot steel market performed flat amplitude, with the exception of a few areas have hundred RMB markup, some of city have 30-50 yuan price rise, part of the main varieties offer is a smooth phenomenon.Therefore, spiral pipe, spiral steel pipe, 3PE anti-corrosive spiral pipe, large diameter spiral pipe, double side submerged arc spiral welded pipe and other product prices are stabilize.
The focus of the market is U.S. Election on November 9. United States and world-wild people must accept the fact that Donald Trump has been elected as the 45th President of the United States and will affect the world development in the next four years or eight years.Trump's election has added uncertainty to the overall economic, which has been fully demonstrated by the nine-day capital market performance. International stock markets, foreign exchange markets have plummeted on the 9th, South Korea, Tokyo, the Australian stock market crash, in which the Nikkei fell more than 5%. Three major US stocks refers to the two fuse, the offshore RMB against the US dollar rose about 170 points, close to 6.79. While spot gold is skyrocketing.Trump election triggered by investor risk aversion will continue in the short term.
Institute of Shinestar Holding Group Steel believes that to the Chinese steel market, the brunt of the impact is the trade port, Trump has stressed the imposition 45% tariffs on all Chinese products. Because the United States is China's second trading partner, China's total steel exports to US accounted is 3%, the trade protection, which is a huge impact on China's economy, the steel export market also formed a strong repression. The another side impact is the RMB exchange rate, Trump has previously said in public that if elected , he will take China as a currency manipulator, RMB will face greater downside risks for the overall economic operation. For commodities, as the gold back, Trump encourage contributed to the risk aversion, gold prices rose, which expected to further high-late. While the bulk of commodity investors, especially the profitability of black products investors oho do not rule out the possibility of temporary profit taking to avoid the risk. From the spot market, the gap between supply and demand mismatch with the raw material port production is expected to post the incremental incremental repair, and raw materials, Of the increase in the probability of succession. Therefore, despite the US election has been settled, but the market uncertainty is growing. But can be expected spiral pipe, spiral steel pipe, 3PE anti-corrosive spiral pipe, large diameter spiral pipe, double side submerged arc spiral welded pipe and other products affected by this, the price is still relatively stable.
