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Home > News > Industry Activities > Fastener Export Might Decrease in 2008

Fastener Export Might Decrease in 2008

By , 2008-03-08 12:00:00

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Many fastener enterprises are facing the decrease of oversea orders in the last few months. Generally speaking, the 4th season should be the golden time to receive new orders for the following year. However, contract to former years, the orders are not fully booked yet. At the same time, a series policy to restrain the trade surplus, such as the speedy appreciation of RMB, has aggravated the situation. From 2007, the reduction of export tax refunds, the rise of material price and wages, which have caused the production cost to rise at least 10%. But the selling price can only rise 3% to 5% at most, so the profit obviously becomes very thin. What's more, some old customers are transferring their business to other Asian countries, such as Kampuchea, Viet Nam and India. If they have cultivated the new suppliers in Southeast Asia countries, the orders for Chinese manufactories will run off with an even faster speed.

 

Under such situations, Chinese fastener export enterprises and associations are not optimistic for the export of 2008. The anti-dumping waves, severe competition, rising cost all weaken the competitiveness of Chinese products. It seems that the only way for Chinese fasteners is to increase investment on technology, develop high value-added products and create famous brands.  

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