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Author Topic: Will lower Chinese Yuan valuation affect our hobby?  (Read 986 times)

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Tom Todd

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Will lower Chinese Yuan valuation affect our hobby?
« on: January 07, 2016, 08:31:42 PM »
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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?
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Philip H

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Re: Will lower Chinese Yuan valuation affect our hobby?
« Reply #1 on: January 07, 2016, 08:37:17 PM »
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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.
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Philip H.
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Baton Rouge Southern RR - Mount Rainier Division.

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loyalton

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Re: Will lower Chinese Yuan valuation affect our hobby?
« Reply #2 on: January 07, 2016, 11:21:23 PM »
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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. 
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jmarley76

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Re: Will lower Chinese Yuan valuation affect our hobby?
« Reply #3 on: January 07, 2016, 11:35:19 PM »
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Business is conducted in dollars, so no effect on the prices. Probably not good for the workers...
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VonRyan

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Re: Will lower Chinese Yuan valuation affect our hobby?
« Reply #4 on: January 08, 2016, 11:46:38 AM »
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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.
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