Agony and ecstasy for Chinese steel firms from currency moves

Beijing - The yuan appreciation is likely to have a negative impact on the steel industry in the short term despite lowering the import costs for iron ore, industry experts said on Tuesday.

"A stronger yuan would give Chinese steelmakers greater purchasing power for raw materials due to lower import costs," said Zhang Lin, a senior analyst with Beijing-based Lange Steel Research Center.

"However, the rising yuan will hit steel product exports, as well as exports from downstream sectors like electromechanical and metal products."