Chinese exporters expect shipments - and prices - to rise

Retail Editor 1, Retail Editor 7, October 19, 2011

Hong Kong - A survey of 900 exporters in China across a variety of industries found 98% expect their export business to jump in the coming months, with the U.S. and EU remaining their key markets.
Higher material and labor costs were cited by many as factors putting upward pressure on prices, along with the appreciation of the yuan against the U.S. dollar, according to the study by trade facilitator Global Sources.
Most of the manufacturers in the survey are looking to cap quote increases at 10%, also Global Sources found some will boost quotes by more than 15%. One-third said they will keep their quote increases under 5%.
"A large number of China exporters are raising prices to shore up margins, which have been shrinking due to the rising cost of key materials and components, and labor. Suppliers, however, are justifying higher prices through significant improvements in product performance and overall quality. Manufacturers hope such modifications can strengthen their foothold in upscale markets, facilitating the shift from low-cost manufacture to the high end," said Craig Pepples, Global Sources' president of corporate affairs.

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