Posted by roger chen - kaysuns industry limited
Agentine Peso Attacked the Extending of KAYSUNS
Kaysuns is a professional stainless steel pipe and fitting supplier. Their stainless steel pipe and tubes, such as duplex 2205 pipe, 317L stainless steel pipe, are widely used in petroleum, chemical, natural gas, shipbuilding, mining and other industries.
Argentina, as one of the most economically developed countries in South America, it has always been our important target market for the past few years. Due to the sharp falling of the Argentine exchange rate, it seems that Argentina's economic recession in 2019 and the shrinking demand have become a trend. We are afraid that the business in Argentina will be greatly affected in this year.
Kaysuns ' stainless steel tubes and fittings have been widely used in the Argentine market, and projects from companies such as YPF have come to our pipes. As a big market in South America, Argentina is also our main market in South America. However, due to the instability of the Argentine exchange rate market, we have seriously affected our development in the South American market this year, and affected countries such as Brazil and Venezuela.
Kaysuns originally expected that exports to Argentina in this year will grow by 20%. But as of August 2019, the actual export to Argentina fell by 50%, which is a huge blow to a company that is committed to extending the South American market.
Since August , Argentina's foreign exchange reserves have fallen sharply. A central bank data show, Argentina's foreign exchange reserves 8 Yue 12 days to 657.36 billion US dollars, 8 Yue 28 fell Day 569.53 billion. 9 Yue 2 Ri evening, the Argentine peso futures contract plummeted, 9 months Maturity Argentine peso futures contract fell 10.1% to 58.8 , 10 months Maturity Argentine peso futures fell 12.7% to 62.70 . At the same time, the exchange rate of the Argentine peso has also fallen sharply. From 8 Yue 10 since May, the Argentine peso against the dollar from 45 front-line quickly dropped to the current 60 in the vicinity, the depreciation rate as high as 30% or more.
We can see that Argentina is taking desperate action to keep dollars in the country as it tries to prop up its collapsing currency and avoid defaulting on its debt for the third time since 2000.
The government “considered it necessary to adopt a series of extraordinary measures aimed at assuring the normal functioning of the economy, sustain the level of activity and employment and to protect consumers,” said the official announcement of the new controls.
We hope that the Argentine exchange rate crisis will pass earlier and hope that Argentina will regain market confidence as soon as possible.
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