Ningbo Enterprises Change Into "Sandwich Cakes" &Nbsp; Sign Up For Exhibitors To Be Cautious.

The 108th Canton Fair held in Yangcheng city in recent days is regarded as a "vane" for judging the trend of China's foreign trade in the second half of the year.

In an interview, reporters found that the yuan continued to appreciate.

Enterprises shout "sandwich cake" difficult to do

Since the beginning of this year, the price of raw materials has shown a general trend.

According to reports, the main plastic raw material PP for producing household electrical appliances increased by 1000 yuan per ton in recent months, and copper rose from 45 thousand and 800 yuan per ton to 62 thousand yuan over the same period last year.

Since June this year, the yuan has appreciated nearly 3% against the US dollar.

China Foreign Exchange Trading Center recently announced that the US dollar to the central parity price was 1:6.6404, breaking the 6.65 pass, and once again refreshed the record since 2005.

The appreciation of the renminbi will increase the purchasing cost of overseas consumers, and the uncertainty of orders will also increase.

Many foreign trade enterprises have become "sandwich cakes" before the price increases of raw materials, labor costs and the appreciation of RMB.

"We used to take part in the Canton Fair. We often suffer from the pressure from foreign buyers. Now it is very difficult for us to raise prices. If customers refuse to accept them, we have to give up."

The director of a Ningbo exhibition company said helplessly.

Sign the bill carefully and quote with innovation.

The exhibitors in Ningbo are generally cautious when signing bills at the Guangzhou Fair. In particular, they are "afraid to pick up small bills, and dare not pick up short lists".

"Our company is mainly based on large customers, signing a contract once a year, and exporting risks are great.

At this fair, we try to reduce the validity of export orders to less than 3 months.

Ningbo Dahua Electrical Appliance Co., Ltd., the person in charge told reporters.

In order to avoid the risk of export contracts, Dahua Electric appliances also made special provisions: the order price should be linked to the raw material market of the products, and the risk of RMB appreciation should be properly considered next year.

Changing the way and means of settlement is a new attempt for export enterprises to deal with exchange rate risks.

The chief executive of Le Si Industrial Company told reporters that they had reached an agreement with a Austria client and settled in Renminbi by means of US dollar binding.

"We sign a single time stipulation, the product quoted price is denominated in Renminbi, exports according to the day renminbi to the US dollar real exchange rate conversion, the customer pays in US dollar."

The official said that the settlement will be gradually promoted in the future.

The Pacific bird import and export company adopts differential quotations according to the time of delivery.

According to Wang Dingying, general manager of the company, the "Taiping bird" made four quotations for orders within six months, namely, 45 days, 90 days, 120 days and 180 days, and the export contract prices of each delivery period increased slightly.

Improving product prices is also an important measure for foreign trade enterprises to solve the cost increase and exchange rate risk.

Ningbo evergreen electric company has introduced new energy saving products such as solar emergency lights, LED lights and so on. The price has increased by 5% to 10% compared with that of the previous year, and the number of customers who had negotiated carefully at the first day before the Canton Fair had exceeded 50.

Most afraid of "warm boiled frog" appreciation

Since the reopening of foreign exchange reform in June this year, the RMB exchange rate against the US dollar is like a "walk in the street", basically a daily price, and it has appreciated by nearly 3% in less than 4 months.

Especially since entering the September, the appreciation of the RMB has accelerated obviously due to the accelerated depreciation of the US dollar, and the number of unilateral pactions has increased by more than 100 basis points.

According to the investigation of Ningbo's foreign trade enterprises by the Finance Department of the Municipal Bureau of foreign trade and economic cooperation, the majority of foreign trade enterprises can accept RMB appreciation by only 5%.

"It can be imagined that such enterprises feel the pressure, such as RMB appreciation of 3%, many low profit textile and garment enterprises are struggling."

People in the Finance Department of the Municipal Foreign Trade and Economic Cooperation Bureau said that if the renminbi appreciates again, many enterprises will go bankrupt or withdraw from foreign trade business.

Reporters interviewed at the Canton Fair found that at present, our city's foreign trade enterprises are most afraid of RMB appreciation of "warm boiled frog".

"Our products are very competitive in the European market. If RMB is appreciated at a time, we can resolve it through a comprehensive increase in prices.

Such a slow appreciation now has the greatest impact on enterprises, because the price is not enough.

The vice chairman of the Limited by Share Ltd, Ningbo, said.