RMB continues to depreciate sharply, sales of imported yarn suffer setback

Yesterday (August 12), the central parity rate of the US dollar against the RMB was 6.3306. The RMB continued to depreciate sharply, and the sales of imported yarn suffered a setback. According to some traders, there were very few inquiries from companies yesterday. Due to the rising costs due to the depreciation of the exchange rate, downstream buyers were unable to bear it, and the sales pressure for later orders increased. According to calculations based on the 90-day letter of credit, orders placed about 2 and a half months ago are now accepted. Calculated based on the current exchange rate, the loss is about 600 yuan/ton. Panic has spread, and importers with average strength may be reshuffled. Secondary traders Buying spot goods from importers may survive, and there are also traders who are also engaged in export trade who can offset part of the profit losses. Some companies have said that they will not quote external prices for the time being, depending on the later price.
On the other hand, import prices have increased significantly, triggering two price negotiations. If the RMB continues to depreciate significantly, there will be widespread defaults and refusals to pay, which will drive international yarn prices to fall. Uncertainty factors will increase in the later period, and downstream or Will reduce purchase intention. The RMB continues to depreciate sharply, causing sales of imported yarn to suffer