Source: Yiwu sourcing agent Author: Helan Date: 2008-08-08
June, at the beginning of summer, is "the world commodity market leader," said the Yiwu Small Commodity City climate index failed to follow the steadily rising temperatures, but U-turn all the way down, the sentiment index is no longer "the economy." The report showed that, in June sentiment index for the Commodity City 1073, the ring fell 57 points, the downward trend evident. In contrast with the sentiment index is the price index climbing all the way, the June index reached 102.49 points, slightly higher than the Central 0.51 points. Rise in raw material prices, lower export tax rebates and RMB appreciation, rising labor costs and the impact of trade barriers and a series of comprehensive effect, the commodity business of the city in the sharp drop in sales, profit margins were compressed, export growth has stagnated, "No Not by the package, inexpensive, "the world-famous model Yiwu, is experiencing an unprecedented challenge.
"Upstream rose 10 percent, we can only rose five percent"
Ms Tianlong in the city of Yiwu Small Commodity operating toy business operators. Five years ago, Yu brothers started in the city Baitan commodity business, from a dilapidated wagon, have experienced "too poor, to fuel a car can be up to plus 20 yuan," the predicament, but after tireless efforts He Commodity City has succeeded in making life Diyitongjin.
But the marketing experts told reporters that "business is now a relatively difficult." Since the end of last year, oil prices soared all the way, as the oil industry chain downstream products of plastic toys, their prices are also rising.
"From the beginning to now, the upstream supplier pricing has increased nearly 10 percent, but those of us Commodity city business operators, in order to maintain the intense competition in the sale of competitiveness, we can only raise prices 5 %. Again high, not a business. "
Tianlong Yu said, "from the previous situation, the Commodity City toy industry profits are generally 5 percent to 10 percent, but suppliers will bid 10 percent, our profits have been compressed into little space for the state."
Yiwu Small Commodity in the city, due to rising raw materials led to the phenomenon of shrinking profits, not just in the toy industry cases. According to June sentiment index report showed that in June, as oil and raw material prices continue to rise, the city has been pulling Commodity Jin Wucheng rising commodity prices and make transactions much frustration.
The report showed that in June, the city in all 17 major commodity sectors, nine categories of products prices rose. Price increases in commodities, or 5 percent of the 53 per cent, or 5 to 10 percent of the 33 per cent.
"Small commodities, Yiwu City is the advantage of low prices, many like us to the Commodity City business operators also hope that prices will remain stable, so most will choose their own to absorb the rising costs of raw materials part of that amount to go through Make up for the loss. "In the city specializing in commodity hardware trade Wang Yuan told reporters.
"It can be said that the Commodity City businesses are also sharing the risk of price increases throughout the industry. At present, the commodity hardware business to the city, the average profits have been compressed to 2 percent to 3 percent." Yuan Wang said. According to the report Commodity City, steel, copper, electroplating processing industries will also increase production costs, hardware tools, locks, electrical products, gold-plated jewelry, and other various sectors of the profits will be squeezed again.
The compressed margins, makes most of the city's Commodity overall operating income households were affected. "Raw materials, fuel prices rose sharply, while prices continued to slump, resulting in declining corporate profits and even losses." Yiwu Economic Development Board to a new report said.
The export growth rate dropped 14 percentage points
Tianlong Yu told reporters that "due to upstream product prices too fast, if domestic sales do, we almost can not earn money, because domestic prices are sensitive to the customer, not to boost prices. And foreign customers while the price is less sensitive, but because RMB appreciation, and other factors, but also to product competitiveness Dalezhekou. "
He said that "recently a lot of foreign clients could not receive a visa to China, but also for business worse." He said, may have the Olympics, the business will be better.
What I Tianlong worry is that the loan-to-crisis led to the U.S. and European markets, demand greatly reduced. "Because of the current loan-to-crisis has weakened many countries and regions in the confidence of consumers, especially the United States to reduce consumption expenditure, the overall world economy has led to the decline in demand as well as China-made products in the overseas distribution difficulties." Yiwu China Commodity Index economy Observers, Cornell University Economic and Social Research Center researcher Mark, "said the U.S. economy to slow down the development of (its 2006 GDP growth from 2.3% to 1.6% in 2007), has aroused the worldwide economic slowdown . U.S. GDP for each decrease of 1 percent, exports of Chinese products will be reduced by 6%. Therefore, this change in China in the impact the most. "
According to Yiwu City Economic Development Board report showed that, as most enterprises in Yiwu industry value chain low-end, the majority of the appreciation of the renminbi also export enterprises to enter the frozen period, profits were substantial appreciation of compression, especially garments, textiles, toys and processing Industries are facing greater difficulties. By rising raw material prices, lower export tax rebates and RMB appreciation, rising labor costs and other factors, Yiwu January to May year-on-year export growth rate dropped 14 percentage points.
For example, countries from July 2007 on some of the goods and lowered export tax rebates, lower tax rebate is in these areas of high energy consumption, high pollution and resource products, the market in Yiwu has accounted for 30 percent of exports. 2008 1 to 5 on the cosmetics Yiwu exports down 22 percent, plastic products exports down 13 percent.
"In addition, from the beginning of the year, some U.S. customers began owed money, but also to suffer business losses." Tianlong Yu said. Yiwu Small Commodity City in a recent research report, the reporter saw, "With the reduction in the number of foreign immigrants, increasing the pressure of RMB appreciation, foreign procurement activities appear intermittently, extension delivery and transaction losses and other issues will be more complicated and aggravate the Foreign Trade grim situation. "
"Barrier Gate" over the "appreciation of the Commissioner" more sad
"And the impact of the appreciation of the renminbi compared to the Commodity City business operators a greater impact or rising raw material and export trade barriers." Yiwu Commodity City Group's management for the Office, told reporters.
"Commodity City general pattern of domestic exports by professional foreign trade companies as an intermediary, a link Commodity City businesses, one connected to foreign customers. Commodity City's general business and foreign trade companies signed an agreement, and as a settlement currency to the yuan. This , The appreciation of the RMB risk was shifted to foreign trade companies, and foreign trade companies dealing with the exchange rate issue is clearly more professional. "The official said.
Hardware Commodity City in the trade in the Yuan Wang told reporters that "if we directly with foreign customers signed contracts, while still using the U.S. dollar clearing, but the payment date, we will require customers to pay for the contract agreement for the equivalent of RMB Exchange. A Extent, with the equivalent to RMB clearing. "
Although the appreciation of the renminbi on the 60 per cent of products for export commodity city had a negative impact, but this impact can be resolved to some extent, and the barriers to trade from foreign markets, but the impact on the city's commodity industry as a whole.
Yiwu Small Commodity Index analysis of the latest report shows that as China's major export markets EU, most recently the new regulation. EU in the June 27 implementation of the directive PFOS (restrictions on the use of perfluorooctane Sulfonyl compounds), will the textile and leather export industries such as a greater impact.
The report said, according to the EU's new regulations, the EU market, sales of manufactured goods in PFOS levels can not exceed the total chemical content of 0.005 percent. But most businesses on PFOS directive has not yet caused enough concern, or even do not know whether their products contain ingredients PFOS, should have a certain difficulty.
As the United States, the European Union increasing technical barriers to trade, but also makes Commodity City toy exports increasingly grim situation. The report said, export momentum Commodity City has suffered more attacks, only 1 to May exports of 8.357 million U.S. dollars, down 12.79 percent. As the host city of Yiwu Small Commodity City toys generally too small-scale enterprises, research and development, design capability is weak, price hikes in raw materials, appreciation of the RMB, increasing labor wages, and other unfavorable factors working together, difficult to deal with, a whole industry losses Situation, the competitiveness significantly decreased.
Prev:Yiwu enterprises go out for the publication of"global investment necessary Set" Next:YWICC to build business originality base