Will lower Chinese Yuan valuation affect our hobby?

[Tom Todd]

1. A lot if not most of our models are made in China
2. For the last two days the Shanghai stock market has been shut down early due to a sort of free fall in stock prices.
3. Many stock analysts think that this will lead to a devaluation of the Chinese currency, the yuan.
So are we I for a reduction or at least a stabilization of model prices?

[Philip H]

I think it depends on how low, how long and how many cntracts come up for negotiation. Current contracts are probably in dollars and unlikely to be redone.

[loyalton]

Agree that future contracts will probably be in dollars, too, and on a short-term project-by-project basis if not that way already. Who knows, the factories may end up wanting payment in something really stable like Swiss francs. 

[jmarley76]

Business is conducted in dollars, so no effect on the prices. Probably not good for the workers...

[VonRyan]

My only concern is what kind of impact this will have on scrap metal prices. Back in June, bare-bright copper was $2.50/lb and when I last took copper to the junkyard last month, I only got $1.85/lb and from what I've been hearing it is still dropping.

That ultimately means that I have to save and strip more wire if I'm to make up for falling prices.