The Cost Of Raw Materials Continues To Climb &Nbsp; This Session Of The Canton Fair Is Raising Its Voice.

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The minimum wage is 20% higher than that of last year, and the price of raw materials is more than two times in one year.

Reporters learned yesterday from the 110th Canton Fair that most of the manufacturers' quotations for purchasers at the Canton Fair were 5% - 20% higher than that of the same period last year, and that the "made in China" products, known for their low price, were deterred by some international buyers.

- rising costs

Manufacturers have no choice but to raise prices.

At the 110 Canton Fair, reporters interviewed dozens of enterprises in different industries, such as household appliances, building materials, lighting and so on. The responsible person invariably claimed that the cost of "made in China" has risen significantly in recent years due to the huge increase in raw materials and labor.

The products of Zhongshan Xiangji Electrical Appliance Co., Ltd. are mainly based on lampblack exhauster and water heater. The cost of raw metal materials is quite high.

The head of the company told reporters that international copper prices have been running high in the first half of this year, the price has increased by two or three over last year, and it did not come back until the end of September.

The company's official said that the product price of the exhibition may increase by about 10%.

In terms of labor, the person in charge of the Zhejiang HUAYU Electric Group Co., Ltd., in Ningbo, told reporters that in the past three years, the cost of hiring workers has increased from 1200 yuan to 1500 yuan per month to 2000 yuan now.

Cheng Jiajia, deputy manager of the foreign market department of Foshan, said that the three increase in the cost of raw materials, labor and RMB has increased by about 25%, and the company has raised its bid by 20% in the spring fair.

The head of the overseas market management department of Chigo Air Conditioner believes that the industry is now booming, and the price increase is imperative. Otherwise, this year's profits will be difficult to guarantee.

The responsible person of AUX air conditioning is holding a conference to focus on pricing.

"It is a question if we want to follow up the price and increase the price."

The person in charge of the company told reporters.

The chief representative of Guangzhou machinery and equipment import and export company in Egypt, Ren Bing, is responsible for selling energy saving lights and switches in Egypt.

Previously, "made in China" mainly relies on cheap products and products such as Italy and Turkey. In recent two years, due to rising raw materials and appreciation of the renminbi, China's products cost much more and its competitiveness has declined significantly.

Ren Bing complained to reporters, "now a lot of Chinese made products are hard to do."

Ren Bing told reporters that with energy-saving lamps as an example, the main raw materials rare earth between January and March this year, only one spring festival price from 250 yuan / kg to 2500 yuan / kg, fully 10 times.

A number of electrical enterprises interviewed by reporters said that as the cost of raw materials and labor increased, the price of electrical products such as pformers and circuit breakers generally increased by 5% to 6%.

If the effect of RMB appreciation is added, some products will even raise the price by 10%.

"The price of light aluminum has risen by more than 10% this year, and our products can only go up in price."

Wenzhou the Great Wall electrical appliances sales manager Qu Pengsheng said.

The Great Wall electric appliance is a relatively large enterprise in Wenzhou. Its products are mainly sold domestically, and the export market is mainly in Southeast Asia. The annual sales volume is about 50 million - 60 million dollars.

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- slight increase in price

"Made in China" is affected.

While the price is rising, the profit margins of many foreign trade enterprises have not increased.

Guangdong Shunde hardware and mineral import and Export Co., Ltd., the person in charge complained that in addition to labor and raw material prices rising factor, because of tight money, interest on loans increased, the company's financial costs are also increasing.

"Pure profit is only 3 to 4 points, and now it is getting lower and lower."

Some enterprises insist on not raising prices.

A small ink box manufacturer said that because merchants are sensitive to price, they can only resist prices, and the pressure of rising costs can only be pferred to the upstream enterprises.

Qu Pengsheng said that since the opening of the two day of the Canton Fair, he has found fewer customers than the first half of the year. The price increase of the product has made him worry: "there is a great deal of contingency in exports. Our customers are mostly local agents, and they can be dug out without careful consideration."

"I plan to buy a computer for sixty or seventy dollars, but now the manufacturer is asking for one hundred dollars. I can't afford it."

A businessman from Turkey said he was hesitant to place an order at this Canton Fair.

Some enterprises said that customers' interest in the order was reduced because of the rising prices, showing a strong wait-and-see mood. The manufacturers are waiting to see whether they want to raise the price and how much the price is raised, while the international buyers want to cut prices, so they have been waiting for the right time to launch.

Li Quanhuai, deputy general manager of Shandong neon Wang Electronics Co., Ltd., said that the merchants of the Canton Fair were obviously cautious about placing orders. An important reason is that the quotation has been greatly improved.

In fact, the price increase this year has had a certain impact on the competitiveness of "made in China" in the international market.

Quixote, a well-known supermarket in Japan, which operates cheap goods, told Zhu Qiumei that the trading intentions of supermarkets and some Chinese suppliers were not implemented after the spring fair ended this year because the price of suppliers increased.

Stephen Philips, President of the Sino British Trade Association, also told reporters that the quotations of many Chinese suppliers in the last two Canton Fair have been greatly improved. Some enterprises' products quoted prices even increased by 20% to 30% compared with the same period last year. This may affect the purchase plan of European buyers in China. They can pfer to more competitive regions in Vietnam, Indonesia and South America. "But at present, the advantages of Chinese products are still quite obvious."

- seeking solutions

Accelerate product upgrading

Ren Bing disclosed that in terms of products operated by his company, the general price increase would not be sold at around 10%.

This time he bought the product of the energy saving lamp, instead of considering the increase in the proportion of switching devices.

He said that in areas where technology is relatively simple, there are still opportunities for Chinese products to go up high quality and high prices. But in areas where IT products and other technologies are relatively high, they still do not produce products in Europe and other places.

At the same time, some products can not be accepted in a short time, and manufacturers can only reduce costs by reducing the quality.

Take energy saving lamps as an example, many manufacturers began to maintain the price advantage at the expense of quality, resulting in word-of-mouth "made in China" worse and worse.

"The energy efficient lamps we used to buy can last for three years, but now they are broken in three months."

Ren Bing said.

The above official of Chigo Air Conditioning told reporters that the Anhui Qiang Qiang school was in the air.

It is difficult for me to give you a lot of trouble.

There is no coincidence.

This year, Weng Yelong, deputy director of the overseas group sales of construction materials, which is expected to reach US $45 million, also told reporters that the group fixed annual R & D investment to new products to reach 5 million yuan, that is, new products can be more than ordinary products.