Recently world market has been getting warm after China devalued the yuan and as of now China's central bank has devalued by 3%. The reason for PBoC's currency devaluation is to promote the growth of Chinese economy; the most specific field is exporting which makes the most important contribution into China’s economic growth. Besides, the yuan devaluation is also to take a step nearer to becoming an official reserve currency.

This devaluation of PBoC has great influence to the economy of China as well as the global economy, especially the international stock market. In recent days, the international stock market really heats up after the PBoC has consecutively devalued the yuan. Even this can lead to a global currency war.

For China economy, a cheaper yuan will make Chinese exports less expensive, potentially boosting the overseas sales that have been among the main drivers of growth during China’s remarkable rise over the past three decades. China mould industry will also be affected as all other exporting fields. 

It is clear that the mould price will be much more competitive (much cheaper) than before. In recent years, rising labor cost in China affects the development of China mould industry very much, makes the mould price less competitive. Now the labor cost is quite stable but the yuan become cheaper than USD, then it is not such a problem anymore. 

(Mould making at Bluestar Mould)

Besides, steel for making mould can be purchased easily inside China and still can match the quality requirements of European and American buyers, and at the moment the price for steel also gets in certain stability. For the manufacturers, like Bluestar Mould, who import steel for the core components, the devaluation will also affect somehow. However, it is worth when they can ensure the quality of the mould, especially in the industries that require high quality like automotive or medical devices manufacturing. 

In one word, PBoC’s currency devaluation this year will make a big impact on China mould industry and help this industry become more competitive than past years which will help both mould manufacturers and buyers gain profits. However, the price is just an aspect, the most important thing to maintain and improve the advantages of China mould industry should be the mould quality. The quality is also what Bluestar Mould Group is pursuing, because we want to bring our partners the best and “To dig customer demand, aim for high-end market, build broader platform, provide solutions for customers and integrate resources according to market changes.”