From the Price comparisons in the international market, we found that the price of hot rolled coil was $ 609, while the price of CIS exports was $ 430, 29.4% lower than the price of the Chinese market. In addition, the prices of what we imported from Southeast Asia and the Middle East were far lower than the Chinese market price. Huge price difference makes China”s steel products not only lose competitiveness in the international market, but also the domestic market is affected.

TX Irving believes that the exchange rate was main factor to cause the bad influence of importing steels in domestic market .Since 2008, the devaluation of the currencies of CIS countries is starting. The end of 2007 to January 2009, Ukrainian currency, the hryvnia depreciated 36.6% against the dollar, the RMB’s appreciated against the dollar by 6.8%. Excluding exchange rates, China”s steel products steel products relative to the Ukraine has a clear cost advantage. However, the sharp appreciation of the RMB’s effective exchange rate, China”s production of the international competitiveness of steel products declined significantly.

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