Export Tax Rebate Greatly Affects MDI Industry Chain

In July 2007, the state reduced the export tax rebate rate of footwear by 2 percentage points. This major adjustment has increased the pressure of shoe business and has had a significant impact on the industry. Up to now, there are nearly 100 shoe making factories in Wenzhou, and the number in the Pearl River Delta region will be expanded by ten times. According to the latest statistics of Guangzhou customs, Guangdong exported shoes 490 million pairs in 1~2 months this year, down 27.5% from the same period last year (the same below), which is worth 1 billion 590 million US dollars, down 0.6%. Among them, 190 million pairs of shoes exported by private enterprises in Guangdong decreased by 41.1%, and 190 million pairs of shoes exported by foreign invested enterprises decreased by 8.9%. The total exports of the two accounted for 77.6% of the total export volume of Guangdong's shoes in the same period. As we all know, pure MDI is one of the raw materials of shoe sole raw materials, and domestic pure sole MDI has a large share in the production of shoe sole raw liquid, which is affected by the tide of shoe manufacturers' failure to convert production. Currently, the operating rate of the shoe bottom liquid manufacturers is generally not very high, and the demand is not strong. This year, the pure MD peak season in 3 and April was not strong, and the price did not rise or fall. Traders in Southern China and East China all indicated that the market was not ideal. This situation lasted until June. At present, the market price of pure MDI in eastern China has dropped to 24000-24500 yuan / ton.