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"Again, I’ve been very impressed with all that you as a company have done for this order. It has been top notch the whole way and such a MAJOR improvement from dealing direct with the manufacturer. I wouldn’t do it any other way in the future!"

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What's Happening In Asian Manufacturing

production cost

Asia Manufacturing Cost Drivers Report – 2016 Q3

Most Asian raw materials and production cost data tracked were on the rise in third quarter. Rubber, steel, aluminum, brass, copper, nickel and paper prices were all up, while wood, textiles, and ceramics were mostly flat, and only a few select grades of plastic, steel and rubber had favorable price trends. The US Dollar lost some of its steam loosing ground against several of the Asian currencies while labor rates and ocean freight were unchanged. China imports and exports saw strong gains in the quarter and the China PPI was up while the CPI was down. One very bullish sign is that all the PMI indexes rose about 50 and are signaling and expanding economy. For all the details, please click READ MORE below the complete report.

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cost drivers

Asia Manufacturing Cost Drivers Report – August 2016

The upward trend in many Asia manufacturing cost drivers continued in August by a 5 to 1 margin versus down trending cost drivers, although most cost drivers still remain positive versus this time last year. In general, those that went up in August went up significantly while those that went down went down only slightly. Specifically, hot and cold rolled steel, zinc, PVC, and nylon prices moved up the most while metals such as brass, copper and nickel, tire rubber, cotton fabric and alumina for ceramic production moved down the most. Fuel prices also moved up about 2% on average in August but still remain well below the year ago levels. The US Dollar continued to strengthen against several of the Asian currencies while labor rates and ocean freight were unchanged. China’s imports and exports were both strong in August. One significant event that will likely impact ocean freight rates in the coming month was the bankruptcy of the Korean shipping company, Hanjin. For all the details, please see the entire report that follows.

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Hanjin Shippoing

Hanjin Shipping Files Bankruptcy

Hanjin Shipping, the largest Steam Ship Line in Korea and the world’s 7th largest Steam Ship Line operating 98 vessels and shipping over 609,500 TEU per year, filed for bankruptcy court protection on August 31st throwing the global shipping business into turmoil. Hanjin is not the only Steam Ship Line that has been losing money over the last 4 years and additional bankruptcies and Steam Ship Line consolidations are likely as well in the next year.

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