china factories grapple with soaring prices as pollution crackdown bites

by:CAI YI JIE     2019-08-30
GUANGZHOU, China (Reuters)-
Chinese exporters at China\'s biggest trade fair are more optimistic about global demand than they were six months ago, but Beijing\'s crackdown on pollution is raising costs and product prices, damage to smaller factories and foreign buyers.
At the Canton Fair, about 25,000 manufacturers showed products from industrial engines to eggs
The mood is optimistic about cracking the machine.
Second in the world-
China\'s largest economy did not meet expectations in this year\'s economic growth, and import and export growth in September shows that factory production activities are still at a high level.
In a survey of 102 exporters in Guangzhou
77% of them are mainly small trade fairs. to medium-
Larger Chinese manufacturers expect orders to increase next year, compared with 70% in April.
But many manufacturers, especially the smaller ones, complain about exchange rate fluctuations and China\'s increased-
Pollution has pushed up costs as companies scramble to invest in new equipment or expensive processes to meet stricter emission standards.
\"Environmental regulations have an impact on everyone.
I feel that 30% of the factories are affected, \"Chen Dalin, director Masda, and the Pearl River Delta manufacturing antenna are about 20 million yuan ($3 million)
Annual sales.
The larger factory is undergoing a reversal.
Pollution blitz is better, but many small factories have been forced out of business, including small aluminum tube manufacturers in eastern Zhejiang, Chen said, noting that the cost of purchasing these components for antennas has risen by 20%.
In recent months, as the government has stepped up its environmental inspections, factories are prepared to cope with the worst smog ever, and commodity prices have accelerated --
The destruction of the whole North this winter.
Since November, about 28 cities have been ordered to cut heavy industry production from aluminum steel to cement for four months. 15.
David Li of Guangzhou lighting Holdings said that the factories using metal plating, dyeing or painting processes were severely impacted and production costs increased by 5-10%.
Four exporters said the virtual ban on waste cardboard pallet display imports for environmental reasons also caused a shortage of universal cardboard floor display packaging, and in some cases cardboard pallet display prices rose by more than 60%.
\"These changes are good, but they are going too fast,\" Li said . \"
Among the 102 exporters surveyed by Reuters, production costs are the biggest concern.
While the online sourcing segment replaces major trade events such as the Canton Fair, which began in 1957, it continues to attract thousands of Chinese factories and foreign buyers, making it a useful barometer of Chinese trade.
Some foreign businessmen say they are shocked by the rise in the prices of some products.
\"It\'s really terrible.
How can prices change so much? ” said Lagos-
Based on Maxwell Akabuogu who also took his monthly container to Nigeria from month to month, with the price of lead-acid batteries, its main product has soared 30% over the past four months.
\"I\'m starting to buy from Korea now.
\"It is more reliable and the price is stable,\" he said . \".
Venee Wen, regional sales manager of Guangzhou Tiger Head Battery Group, the popular \"555\" brand, said that due to the soaring cost of base metals, since April, the price of lead batteries has risen by 20 to 30%. “China’s long-
Long term policy on the environment is good but there is a short term policyterm impact . . . the bad (polluting)
She told Reuters that the company had died.
\"Buyers will have to get used to these prices.
They will not return to the previous level.
\"This summer, the price of zincand leadprices in Shanghai rose, and during the anti-corruption period, dozens of local coal mines were closed for a long time.
Pollution Check.
Winter production restriction measures have also led to a record purchase of raw materials from abroad. Forty-
4% of the companies surveyed said the yuan rose 5% against the dollar this year, causing \"significant\" harm to their business, while nearly 50% said the yuan was \"slightly\" hurt against the dollar. Forty-
Further appreciation of RMB 3%-
It will reach 5% in the next 12 months.
Concerns about the Sino-US trade war under President Donald Trump have also eased, with 30% believing the possibility exists in the current poll, compared with 40% in April.
\"Trump is a businessman,\" said led TV maker Liu Linxia . \".
\"He will make some noise, but he will not fight.
Many people dismiss the geographical environment.
North Korea\'s political tensions escalated into a possible conflict, with only one of the five exporters worried about the risk. ($1 = 6.
RMB 6062)
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