China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
The Australian dollar took it on the chin on Thursday declining to 92 US cents, a 33-month low.
The drop comes after the US Fed’s announcement on Wednesday that it is may soon scale back on its policy of quantitative easing, which would strengthen the US dollar.
China also stirred the pot by releasing purchasing managers’ index (PMI) data which showed a decline in manufacturing contracts due to decreases in production and demand.
The mining industry is a major contributor to the Australian economy and accounts for nearly 10% of the country’s GDP.
Other major currencies were not spared. South Africa’s rand lost 0.44% and the Canadian dollar showed some weakness by hitting 96 US cents – its biggest decline in almost one month.
Chart from: Financial Visualizations, FINVIZ.com.
Creative Commons image by Michael Daddino.
