Libya War Will Affect Exports Of Shoes, Garments And Other Products In Quanzhou.

The impact of the Japanese earthquake has not subsided, and the escalation of the war in Libya has become the focus of global attention.

Though geographically,

Central and northeast Africa Trade

Statistics from the Quanzhou Municipal Foreign Trade and Economic Cooperation Bureau show that the total export volume to Libya in 2010 was US $90 million 120 thousand, and the export products were mainly textiles and clothing, shoes and hats, umbrellas and so on.

"Libya has a small share of the export market of our city."

Chen Cangsong, Secretary General of the Fujian Provincial Textile and garment export base, analyzed, but the Middle East and Africa are important emerging export markets in Quanzhou.

Based on the geographical location of Libya, under the influence of the war, the Middle East and North Africa are just like a small gunpowder box that slowly burns the fuse. If the situation in Libya deteriorates further, it will inevitably affect the normal trade in these two areas.

New pressures on raw materials

Then, what is the impact of the current international situation on raw material prices?

Some analysts believe that, as the eighth largest oil producing country in OPEC, Libya's crude oil exports almost fell to zero in the past month. If the bad situation spreads to the Middle East, it may lead to imbalance in supply and demand of crude oil. The surge in crude oil prices will inevitably lead to cost pressures to downstream productive enterprises.

At present, the rubber used for shoe material production in our city is generally made of synthetic glue, which is refined from crude oil. Therefore, with the rising price of crude oil, the cost of shoe materials will be under rising pressure.

At the same time, it will also affect the chemical fiber enterprises and their downstream garment enterprises.

Accelerating the development of new materials

"If oil prices continue to rise, companies will think of passing the cost pressure through price increases.

However, high oil prices may cause domestic and foreign demand to drop, resulting in a decline in orders for all kinds of enterprises, including garments.

Enterprises are facing a dilemma. "

Analysis of the industry.

Chen Cangsong analysis: "if the raw materials continue to rise, it may bring a new round of industry shuffling. Enterprises with innovative ability will replace traditional materials by developing new materials, improve the added value of products, and the processing enterprises lacking in innovative ability will face greater pressure."

It is reported that, under the pressure of rubber rising, Baofeng shoe industry has reduced the use of rubber in the production of slippers and added new ones.