Export Prices Increase 5-10%
The 109th China Import and Export Fair, commonly known as the Canton Fair, was opened on Apr 15. The number of participants and the scale both created historical high. Participants said the export price generally increased 5-10% due to higher cost and RMB appreciation. A producer said some of their popular products even saw an increase of 20%. Most purchasers showed their understanding for the increase and it did not affect orders much. However, the vice general manager of Ningbo Huamei Threads said some foreign customers have shifted some of their orders to Southeast Asia after the price was adjusted up. The export orders for textiles and apparel did not see any apparent increase during the fair. If RMB appreciates 1%, the profit of producers will reduce about 5%, which compelled producers to lift export prices. Industry players still suggest companies to face RMB appreciation, creating their own brand to win market share.