Economy

AISI Comments on China Currency Devaluation
Written by Sandy Williams
August 11, 2015
China made a surprise devaluation of its currency today to bolster its faltering economy. The 2 percent devaluation of the yuan will make imports to China more expensive but will make exports more attractive to international traders.
The American Iron and Steel Institute (AISI) issued a statement today concerning today’s currency move by the Chinese government.
“Today’s action is further illustration of the Chinese government’s active role in manipulating the value of its currency to promote Chinese exports,” said AISI President and CEO Thomas J. Gibson. “China has consistently intervened directly in foreign exchange markets to control the value of the yuan versus the U.S. dollar to make their exports more competitive and impose new barriers to imports. Our government must address the massive damage that China’s undervalued currency is causing to our nation’s manufacturing sector, especially the steel industry.”
Gibson noted that U.S. Treasury Department again, in its April report on exchange rate policies, confirmed that the Chinese currency remains “significantly undervalued” but did not officially declare them a currency manipulator.
SMU will have a more detailed review of the currency values of the major steel trading nations against the U.S. dollar in our Premium newsletter which will be published tomorrow (Wednesday) morning.

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

Multi-family pullback drives housing starts to 5-year low in May
US housing starts tumbled in May to a five-year low, according to figures recently released by the US Census Bureau.

Architecture firms still struggling, ABI data shows
Architecture firms reported a modest improvement in billings through May, yet business conditions remained soft, according to the latest Architecture Billings Index (ABI) release from the American Institute of Architects (AIA) and Deltek.

Manufacturing in New York state contracts again
However, companies are growing more optimistic about the future.

ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Beige Book finds growing economic, policy uncertainty
All districts reported "hesitancy and a cautious approach to business and household decisions,” according to the Beige Book.