This portion is the China Report:
Fresh raw material is supply is up about 15% resulting in a less expensive raw material price to producers then last year. On the surface that looks good but as we all know, nothing is so easy as that these days.
Production is down despite this increase.
Financing is very limited.
While raw material price is down in RMB terms [Last year range of 0.90 - 1.20 vs. 0.60 today] so farmers are not keeping crop for later sales.
Anti Dumping imposing on China's exports to Europe to be announced shortly resulting in very weak orders.
Costs are up including tin plate up 10% and Labor up 20%
Fuel costs are up 50% from last year TMB$600/ton to $900/ton.
FOREX impact frm 1 US $ at RMB 7.3 to today's 6.83.
Chinese New Year is Early this year cutting the production period.
These things combine to make it look like the prices may jump a nice bit after the holiday for those looking to buy.
To get the best prices orders need to be in hand very soon [like now!] to assure price and quality.
More as it comes...
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