• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

China Supplier Survey Shows 70 Percent of Mainland China Manufacturers Plan to Raise Export Prices in the Next 12 Months

Posted on: Monday, 11 September 2006, 06:00 CDT

HONG KONG, Sept. 11 /Xinhua-PRNewswire-FirstCall/ -- Global Sources' (NASDAQ-GS: GSOL) Third Bi-Annual China Supplier Survey shows that 70 percent of mainland China manufacturers plan to raise export prices in the next 12 months -- up from 63 percent at the end of the second half of 2005.

(LOGO: http://www.newscom.com/cgi-bin/prnh/20030303/LNM011LOGO-b )

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 labor 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 percent of respondents expect to limit price increases to 10 percent or less."

Exports to the Middle East, Africa, non-EU European Countries Expected to Grow

Kleist said: "North America and the European Union (EU) are key export markets for 61 percent of surveyed suppliers.

"To avoid cutthroat competition in those markets, many suppliers are focusing on other regions. Twenty-nine percent say they are targeting Africa, the Middle East and non-EU European countries like Russia. That's up from 11 percent reported in the first half of 2005."

Exports to Continue Strong Growth, But at Slower Pace

Kleist said: "Suppliers are still positive about export growth, with 100 percent expecting some increase. However, as competition intensifies and costs rise, fewer suppliers are predicting large export growth increases.

"This year 68 percent of surveyed manufacturers expect export sales to increase by more than 5 percent, as compared with 80 percent for the second half of 2005. Also, more suppliers predict growth of 5 percent or less -- 32 percent versus 19 percent in the last survey."

Plans for capacity expansion have been scaled back, with 32 percent of suppliers projecting increases of more than 20 percent. The second half 2005 survey showed 43 percent expected to increase capacity by more than 20 percent.

"Based on the surveys, suppliers can expect lower margins and buyers can expect higher prices in the months ahead," Kleist said.

The complete Global Sources China Supplier Survey is free to download at http://www.globalsources.com/SITE/CSSURVEY.HTM .

The China Supplier Survey's data was compiled from 10 of Global Sources' China Sourcing Reports ( http://www.chinasourcingreports.com/ ). The China Supplier Survey and China Sourcing Reports are part of the company's product and sourcing information services which include Global Sources trade magazines, Global Sources Online ( http://www.globalsources.com/ ) , Global Sources Direct ( http://www.globalsourcesdirect.com/ ) and the China Sourcing Fairs ( http://www.chinasourcingfair.com/ ). For more information about Global Sources, visit http://www.corporate.globalsources.com/ .

About Global Sources

Global Sources is a leading business-to-business (B2B) media company and a primary facilitator of two-way trade with Greater China. The core business is facilitating trade from Greater China to the world, using a wide range of English-language media. The other key business segment facilitates trade from the world to Greater China using Chinese-language media.

The company provides sourcing information to volume buyers and integrated marketing services to suppliers. It helps a community of over 530,000 active buyers source more profitably from complex, overseas supply markets. With the goal of providing the most effective ways possible to advertise, market and sell, Global Sources enables suppliers to sell to hard-to-reach buyers in 230 countries.

The company offers the most extensive range of media and export marketing services in the industries it serves. It delivers information on 1.8 million products and more than 130,000 suppliers annually through 11 online marketplaces, ten monthly magazines, over 100 sourcing research reports and 14 trade shows, including six China Sourcing Fairs. Suppliers receive more than 7 million sales leads annually from buyers through Global Sources Online ( http://www.globalsources.com/ ) alone.

Global Sources has been facilitating global trade for 35 years. In mainland China it has over 1,400 team members in 44 locations, and a community of over 1 million registered online users and magazine readers for Chinese- language media.

Global Sources Press Contact in Asia: Camellia So Tel: +852-2555-5043 Email: cso@globalsources.com Global Sources Investor Contact in Asia: Eddie Heng Tel: +65-6547-2850 Email: eheng@globalsources.com Global Sources Press Contact in U.S.: James W.W. Strachan Tel: +1-602-978-7504 Email: strachan@globalsources.com Global Sources Investor Contact in U.S.: Kirsten Chapman & Moriah Shilton Lippert/Heilshorn & Associates, Inc. Tel: +1-415-433-3777 Email: kirsten@lhai-sf.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20030303/LNM011LOGO-bPRN Photo Desk, photodesk@prnewswire.com

Global Sources Ltd

CONTACT: For media in Asia, Camellia So, +852-2555-5043 orcso@globalsources.com, or in U.S., James W.W. Strachan, +1-602-978-7504, orstrachan@globalsources.com, both of Global Sources; for investors in Asia,Eddie Heng of Global Sources, +65-6547-2850, or eheng@globalsources.com; or inU.S, Kirsten Chapman & Moriah Shilton, +1-415-433-3777, or fax,+1-415-433-5577, or kirsten@lhai-sf.com, both of Lippert/Heilshorn &Associates, Inc., for Global Sources

Web site: http://www.globalsources.com/SITE/CSSURVEY.HTMhttp://www.chinasourcingreports.com/http://www.globalsources.com/http://www.globalsourcesdirect.com/http://www.chinasourcingfair.com/http://www.corporate.globalsources.com/

Source: PRNewswire

More News in this Category