Encounter India Anti-Dumping Half A Year &Nbsp; Haimen Needle Enterprise "Stay In Winter Until Spring".

In June 22nd of this year, the India customs decided to impose a 5 year anti-dumping duty on the Sewing Machine Needles originating in China, and the tax was levied until June 21, 2016.

Over the years, the friction between Chinese and Indian sewing machine needles has escalated.

According to the China Sewing Machinery Association

However, in the same Market Research Report of the Sino Russian Association, it also shows that India's anti dumping incident has a huge impact on the needle industry. It belongs to Jiangsu Haimen area.

Haimen area, known as the "hometown of Chinese machine needles", is the largest medium needle machine enterprise in Jiangsu. Most of its products are exported to the India market, which has the greatest impact on Haimen needle industry.

Gao Jiaping, President of Jiangsu Haimen sewing machine needles Industry Association, has used the word "devastating blow" to evaluate the impact of India anti-dumping on the local needle industry.

It has been half a year since the incident occurred in India. What is the situation of the local needle industry in Jiangsu?

Encounter cold - India's exports basically cease

India has been an important overseas Chinese sewing machinery industry.

However, in June 22nd of this year, the India customs decided to impose a high anti-dumping duty on Sewing Machine Needles, which was originally manufactured in China for 5 years.

This incident has resulted in the export of the India market as a main source of economy for a long time with the high quality needle products exported to China. The machine needle in Jiangsu Haimen area has been greatly affected, and many local machine needle exports have been blocked, and the enterprises are struggling to survive.

According to the reporter, Jiangsu Haimen machine needle industry is one of the five pillar industries in the region. The local scale of machine needle enterprises is about 23, and the output is 30 million bags -4000 10000 pack / year.

Whether it is direct selling or foreign trade company export, about 80% of Haimen machine needle is sold to India market every year.

Haimen local machinery enterprises exported to India accounted for more than 43%-90% of their own export volume, and even some local machine needle enterprises accounted for about 96% of India's export volume.

Therefore, since India's anti-dumping against domestic machine needles, Haimen machinery needle industry has basically been at a standstill for India's market.

According to the authoritative statistics of China Sewing Machinery Association, since June, China's exports of sewing machine needles in India showed a significant downward trend on the whole. The monthly export volume suddenly changed from the two digit increase in the first half year to the negative growth since July, and the export volume dropped by more than 50% in September and October.

Among many Haimen export needle enterprises, the Nantong Baihe machine needle Co., Ltd., which was founded in 1975, has always maintained the share of product exports to the India market for more than 90% of its output. Therefore, it has become a recognized "disaster hit household" in the anti-dumping.

Ni Hui, chairman of Nantong Baihe machine needle Co., Ltd., told reporters.

Turning to the export situation of Haimen needle industry in the past six months, Gao Jiaping, President of Jiangsu Haimen sewing machine needle industry association, said: "as far as I know, our local exports to India have basically ceased. The India market has really failed. The export basically is" blocked ", and the Haimen machine needle industry has suffered another" cold winter "after 2008.

Boil the winter - turn the market and sell to the domestic market.

In the face of the strong cold wave of India's anti-dumping against domestic machine needles and the 5 year long anti-dumping tax period, where will Jiangsu Haimen needle enterprises go?

It is understood that the degree of the impact of anti-dumping on Haimen needle enterprises is also polarized. Such as white crane needles and many small and medium-sized needle enterprises mainly exported to India, because their exports are highly dependent on the India market, so the degree of impact is most serious.

And some enterprises such as Nantong Sheng Yi Zhi needle Co., Ltd., which have a low degree of export to the India market, have a low proportion of the export to India market, so they have not been affected much in the cold market.

But there is no doubt that by the chain reaction brought by this incident, the domestic needle Market and other overseas needle export markets such as Pakistan and Vietnam have escalated.

President Gao Jiaping introduced the current local needle industry.

"In overseas market export, many Haimen needle export enterprises have shifted their attention to Singapore, Pakistan, Vietnam, Indonesia and other countries.

And in the domestic market, enterprises in Zhejiang, Fujian and other garment industry cluster market forces significantly strengthened.

He introduced it.

Ni Hui said: "now do not want to worry about the India market, the main focus is on the development of markets such as Pakistan and Indonesia."

Chen Hongbin, general manager of Nantong Sheng Yi needle manufacturing Co., Ltd., said that as a Haimen local needle enterprise, although the volume of exports to India market is not large in proportion to the total export volume of the company, and most of them are sold in India or other agents, the anti-dumping incidents in India have not been greatly affected for six months.

But Chen Hongbin told reporters at the same time: "influenced by the India incident, the export volume of many enterprises has been pferred to domestic markets or to Pakistan markets. The quantity of needle products in the market has been relatively surplus, so we are both under intense competition pressure in the domestic market and other overseas markets."

At the same time, Gao Jia Ping, general manager of Haimen Henry needle manufacturing Co., Ltd., joyfully said that since India anti-dumping, although many companies turned their attention to domestic or overseas markets or carried out re export operations, their companies and their brothers' exports to India unexpectedly did not receive any impact, but on the contrary, it was very good. "India"

Gao Jiaping introduced: "our company's export to India is mainly done by two relatively large merchants (dealers), and the export volume has been maintained at about 40% of the output. Since the anti-dumping, it has not been affected.

The other two India dealers are pshipment or have any special relationship, and the specific operation is not clear or convenient.

This is the "accident" harvest of Gao Jia Ping and his Henry needle in the past six months.

Waiting for spring -- quality improvement and technological innovation is the way out

As we all know, the low-end needle in the India market is basically from China, especially from Haimen District, Jiangsu.

Although Japan, Germany, South Korea, and Chinese Taiwan enterprises also export to India or set up factories in India to provide some high-end needles, the price is mostly 8 times to 10 times that of Chinese production needles.

Similar machine needles, if RMB.

But another undeniable fact is that in the world sewing machinery industry, the brand image of domestic machine needles in the international market has always been excellent and inexpensive. However, the positioning of the middle and low end needle determines that there are few products that can match the technology, quality and raw material of the machine with Japan and Germany.

Yang Xiaojing, Secretary General of the China Sewing Machinery Association, pointed out in the interview that at present, the sewing machinery industry in China is in a critical period of pformation and upgrading from big to strong. India's "machine needle anti-dumping incident" has not had a great impact on the domestic sewing machine industry, but it also reminds the domestic machinery enterprises from one level. In the process of opening up overseas markets, it should abide by the international market rules, persist in developing the market with value marketing, actively adjust the product structure, constantly pform and upgrade, and avoid falling into the anti-dumping trap.

This time, President Gao Jia Ping explained: "for a long time, the localization of domestic needles, especially the positioning of the low end of Haimen machine needles, determines that the profit of machine needles is very thin and can only survive in the market in the way of volume.

Coupled with the rising cost of raw materials, labor and electricity in recent years, the machine needle enterprises can not afford to invest huge amounts of money and manpower in R & D innovation like the whole machine company. Of course, product quality can not be improved, thus forming a vicious circle.

But Gao Jiaping also admitted that from 56 years of domestic production needles, the production technology of domestic machine needles has only undergone an innovation in 1996, and other times have insisted that the most traditional technology has not made great progress.

But without technological innovation, we can not get value, nor gain profits, nor can we face the fierce market competition in the future.

Ni Hui, chairman of Nantong Baihe machine needles Co., Ltd., also said with deep feeling, "product technology innovation and quality improvement is the way for Haimen machine needle to develop in the future."