Rising dollars: time for America to stock Chinese aluminum coils in bulk

Recently along with the raising interest rate released by Federal Reserve, the exchanging rate of dollors to Chinese yuan has witnessed a drastic change. The rising dollars and devaluing Chinese yuan make it a wonderful time for American customers who is importing aluminum products like aluminum sheets, aluminum coils, aluminum circles to import in large bulk to stock it.

In the early morning of the 22nd, the Federal Reserve raised interest rates by 75BP as expected, and raised its interest rate forecast from 2022 to 2024, from 3.4%, 3.8%, and 3.4% to 4.4%, 4.6%, and 3.9%, completely shattering the illusion of a rate cut in 2023, causing U.S. stocks to plummet. On Friday, the US dollar index officially broke through the 113 mark and closed at 112.85. Goldman Sachs predicts that in November and December, interest rates will be raised by 75BP and 50BP respectively, which are 25BP higher than before. Earlier, Ray Dalio, the founder of Bridgewater Fund, issued a pessimistic warning. This can also impact on the aluminum sheets and coils. He expected that when the Federal Reserve continued to fight inflation by sharply raising interest rates (the interest rate was close to the upper end of the range of 4.5% to 6%), private credit would increase sharply. A contraction would cut spending and U.S. stocks would plummet 20%. Until now, the decline of non-US currencies against the US dollar in the past year has basically been in the range of 10% to 30%. In the past week, the US dollar index once broke through the 113.19 mark. What is this concept? In the past year, the US dollar index has risen by more than 21%, hitting a new high since May 2002. The most recent previous high was around 120 in January 2002. In the past year, the US dollar has appreciated against the euro by 17.43%, the pound by 20.84%, the Australian dollar by 10.54%, and the Korean increased by 21.15%, JPY 29.95%, RMB 10.36%.

And what impact will this cause to the international trade in areas like aluminum product for sale? Well, American clients can stock and purchase Chinese aluminum sheets and other aluminum products in bulk to stock them while the price is relatively low. And Haomei is a great aluminum coils manufacturer, supplier, wholesaler and exporter from China. We sincerely recommend you to buy the goods from us. We welcome American customers to visit our factory and company if you wish for an inspection. If you have such intention, please send us an email.