Export prices for Chinese cold-rolled coil and hot-dipped galvanized coil dropped over the past week, largely due to limited buying interest arising from heightened trade tensions between China and the United States, market sources told Fastmarkets.
The Chinese currency passed the 7-yuan per $1 threshold earlier this month after US president Donald Trump announced plans to impose 10% duties on $300 billion of Chinese imports from September 1.
The Chinese currency was trading at 7.05 yuan to $1 on August 14, as compared with 6.88 yuan per $1 a month earlier.
The weaker currency has enabled Chinese producers to lower their asking prices to entice customers, a trader in Shanghai said.
Market sources in China also cited the recent decline in the price of iron ore as another factor that influenced many buyers to remain on the sidelines and refrain from making…