A recent survey of automotive and non-automotive suppliers in China has found that exporters are increasing their prices.
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Global Sources’ Third Bi-Annual China Supplier Survey shows that 70% of mainland China manufacturers plan to raise export prices in the next 12 months – up from 63% at the end of the second half of 2005.
The China Supplier Survey compiles data from a range of consumer products exporters to give buyers who source from the region 12-month projections on pricing, capacity and production trends.
For this survey, data was gathered from suppliers of brake parts; cook tops, hoods & ovens; cosmetics; doors; faucets; gambling supplies; hardware fasteners; health monitors; sports balls, and swimwear. Staff researchers interviewed 741 mainland China manufacturers in person and by phone over a six-month period.
General Manager of Global Sources’ Content Development, Michael Kleist, said: “Higher metal and plastic prices, higher domestic labour costs and a potential revaluation of the yuan have resulted in many mainland China manufacturers predicting higher prices in months ahead.
“However, due to fierce competition, 52% of respondents expect to limit price increases to 10% or less.”
The key export markets for 61% of suppliers are the European Union and North America, while exports to the Middle East, Africa, non-EU European Countries are expected to grow.
All those surveyed expected exports to grow, however, competition is intensifying and fewer companies surveyed are expecting large export growth increases than in the last survey a year ago.
