Fri, March 7, 2014 8:58 am
DTC reports Chinese coal read more below
As shown in the graph below, there is a strong correlation between Chinese coal imports and the strength of the Chinese Yuan Renminbi over the past 5-years. The Yuan strengthened steadily since 2009 while coal imports increased with it. What’s concerning is the decline of the Yuan during the last month and a half as it may suggest weaker imports to come. It’s beyond our abilities to forecast currencies, but we will keep a watchful eye on the Yuan as it may have a meaningful impact to Chinese coal imports.
Note: The Yuan exchange rate is typically written in terms of $1USD, but for graphing purposes we’ve used the inverse.