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.

CNY_versus_Chinese_Imports

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