Devaluation of the RMB effection on fitting and flange exports
Some analysts said, in the short term ,devaluation of the RMB have boost the exportation, but still limited by the global devaluation, exports to exchange rate changes little elasticity, disappearance of low-cost and pessimistic oversea demand ,etc. Chinese exports(such as pipe fitting and flange) are still at the bottom stage.
In the current overall level of contraction in global demand, export growth fell in the background, the world’s major economies and employment in order to protect domestic commodity market will take corresponding measures, which will weaken the advantage of low price. The result outcoming is competitive advantage derived from devaluation for Chinese exporters will be compressed, devaluation stimulating effect on exports compromised.So it’s a challenge for pipe fitting and flange industry in China.