The yuan’s biggest monthly decline in a year and a half
Since March 2021, the renminbi has ended its appreciation since the end of May last year, turning lower against the dollar and has now fallen to the end of November. It is good news for Pcb Screw Terminal, round pin header and walking reflector.
In the two months prior to 2021, the yuan averaged 6.4699 against the dollar and 6.5066 in March. On March 31, the yuan’s median exchange rate against the dollar was 6.5713, down 72 points. Throughout March, the yuan’s median price depreciated by 1.5%, ending a nine-month rally and its biggest one-month decline in 19 months.
The industry expects the dollar index to remain strong in the second quarter of this year. However, the RMB exchange rate fluctuation may increase under the pressure of the US dollar continuing to rise and geopolitical factors. RMB exchange rate short-term or will be under pressure to lose 6.60 key points.
Once again becoming the largest buyer of Chinese goods
In 2020, the United States again became China’s largest exporter, accounting for 17.4 percent of all exports, up 8.4 percent from the previous year.
According to Forbes.com, China accounted for 19 percent of U.S. imports in 2020, ranking first. Especially in the import of anti-epidemic materials, Chinese goods play a role far more important than other countries. Four of the 10 fastest growing U.S. imports last year came mainly from China, according to the U.S. Census Bureau.
Data show that in 2020, imports of masks and disposable surgical clothing in the United States increased by about 279% and 170%, respectively. Among them ,83% of imported masks are made in China, and 2/3 of protective clothing are from China. Nearly half of the U.S. imports of refrigerators and freezers over the years came from Connecticut, but by 2020 it had fallen to 43 percent, Forbes.com reported. Last year, U.S. imports of box refrigerators dedicated to storing vaccines exploded, with nearly 90 percent coming from China.
Increase tariffs on basic imports of solar photovoltaic equipment from 1 April next year
Indian Ministry of Renewable Energy (MNRE) March 9 announcement, Since April 1,2022, basic import tariffs (BCD) to 40% for imported solar modules (Solar Module) have been raised, Solar cells (Solar Cell) increased to 25. If India’s solar power is increased by 10 GW over the next 12 months, Higher BCD is expected to increase the cost of solar power producers by about 9 billion rupees a year.
The government’s extended defense tax on imports of solar cells and modules (Solar Cells whether or not assembled in modules or panels) will expire in July 2021, mainly from Chinese mainland, Thailand and Vietnam. Before the 14.5% defense tax, the cost of importing solar modules (including freight, risk avoidance) is 25% lower than the local production cost. After the expiration of the defense tax is replaced by the basic tariff, the cost of imported equipment will be about 6-8% higher than the local production cost in India. While the cost of modules produced using imported solar cells will be 4-5 per cent lower than those produced exclusively locally, locally produced batteries and modules in India will not be able to fully meet market demand demand and will, on the contrary, allow local operators to raise prices to match import prices. In the future, if foreign investment increases, India’s locally manufactured modules and batteries increase capacity, lower costs and economic scale and competitiveness, the basic import tariffs are expected to be reduced.
Post time: Apr-15-2021