The devaluation of the US dollar supports the subsequent rise of 40Cr material price

In the new year, the US dollar continues to depreciate. Because of the pressure of the Federal Reserve's money release, low interest rates and Biden government's preparation for more large-scale fiscal stimulus, it is expected that the depreciation trend of the US dollar will be difficult to change in the future, and the depreciation rate will gradually increase. As time goes on, it is expected that after entering the second quarter, the upward pressure of black series commodity prices caused by the depreciation of the US dollar will increase. If the devaluation of the US dollar really exceeds 30% this year, the subsequent rise in the prices of raw materials, energy and steel in the international market will be greatly motivated, 40Cr material price will be inevitably affected also.

Although after the Spring Festival, China's steel market has obviously warmed up and the trend is good, we should also see that 40Cr material price has increased a lot so far, and the risk preference has begun to change.