Author Archives: ASK SOURCE

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ASIA MANUFACTURING COST DRIVERS REPORT Q3

Category:Cost Drivers Report,Education,Manufacturing Tags : 

The commodity price trends in the third quarter in Asia are mostly up. Many grades of Plastics, Rubber, Steel, Alum, Wood and Paper raw materials rose in price while some grades of Metals, Textiles and Ceramics went down in price. Petroleum and fuel prices were up in this quarter and labor rates were steady in the lower wage countries. The US Dollar rose moderately against most of the Asian currencies in Q3. China imports and exports saw up in the quarter. The China PPI was down slightly while the China CPI was up slightly. The PMI USA and Hong Kong indexes saw a slightly improvement in Q3 while PMI China saw a little marginally down. Below is a chart of the cost driver trends in 2018-Q3 and for all the details, please see the entire report.

si asia manufacturing cost drivers report 18Q3

ASIA MANUFACTURING COST DRIVERS REPORT DETAILS

PLASTICS & RUBBER
– All General Purpose plastic resin prices were up in the third quarter, PP(K8303) and Food Grade are up significantly (on average about 8.9%) and the others only up in price marginally. Year over year, PVC and PE prices are down 7.2% and 4.3% respectively. But most plastic prices remain up in price versus one year ago. PP (K8303) is up the most (close to 22%), followed by PP up 13.7% and PS up 9.6% while PET price is unchanged.
Source international cost drivers report 2018 Q3

– Engineering plastic prices were more mixed with Nylon and Nylon (PA6) and POM prices up by 6.6%, 5.4% and 4.1% respectively, while ABS and PU Foam prices were down slightly. Year over year, ABS up in price the most at 21.4% followed by Nylon up over 11% and the others only up in prices marginally, while ABS and PU Foam were down marginally in price versus one year ago.

– Most of the Rubber prices were up in Q3, BR saw a huge up in price, up over 22% and Latex, SCR5 and CR prices were all up over 5%. NBR is the only one which down marginally in price. EPDM price is unchanged. Year over year, CR and EPDM prices up sharply which are over 19% and BR and NBR up slightly, while Latex and SCR5 down marginally versus one year ago.
Source international cost drivers report 2018 Q3

METALS
– For the third quarter of 2018, most of the prices for Carbon Steel were up, with Steel Wire is up most which was over 12% followed Pig Iron was up 8.5%, others were up marginally. Only Hot Roll Steel Sheet in price was down a little. Year over year, the trend is all up with Cold Roll Steel Tube and Pig Iron up over14% and others up slightly.
Source international cost drivers report 2018 Q3

– In the Stainless Steel part, 201, 410 and 304 prices were up on average about 3% while 420 and 430 grade down a little in the third quarter. Year over year, the trend is down with most grades of stainless steel down in price on average about 9%. Except for 304 price is up 3.7%.

– All aluminum grades rose faintly in price in the third quarter. Year over year, all prices were down in price, with 6061 is down the most which is over by 27% followed 3003 and A00 down 13.6% and 11.1% respectively, and 1060 price is down marginally.
Source international cost drivers report 2018 Q3

– In Other Industrial Metals, all grades trend was down in Q3. Nickel’s price was down by 11%, followed Zinc down 7.2% in price and the rest of metals were down a little. Year over year, most of metals prices are up, with Nickel is up most (close to 14%) and Copper and Brass Rod are both up 2.6% while Zinc price is down 12.8% versus one year ago.
Source international cost drivers report 2018 Q3

WOOD, PAPER & TEXTILES
– Wood prices inched slightly higher in Q3 except Pine and MDF is steady in price. Year over year, MDF’s price increase over 13% and the others only up marginally.
Source international cost drivers report 2018 Q3

– Meanwhile most grades prices of Paper Materials were no change except for Corrugated Board price down 4.1% in the third quarter. Year over year, most of the paper prices are decreasing, with Corrugated Board down over 16% and others prices down a little. Only Art Paper is steady.
Source international cost drivers report 2018 Q3

– Textile fabric prices saw little change in the third quarter with Raw Cotton down slightly and the rest were unchanged. Year over year, the grade in prices are mixed, with Raw Cotton and Polyester Fabric up in price t at 2.4% and 0.3% respectively while the 100% Polyester Fabric and 100% Cotton Fabric are down marginally.
Source international cost drivers report 2018 Q3

CERAMIC AND GLASS RAW MATERIALS
-In Ceramic Raw Materials, only Alumina price was up over 23%, while in Feldspar, Soda Ash and Kaolin were down in price on average 4.6% and rest were down marginally. Year over year, Feldspar, Kaolin and Quartz are all up marginally while rest were down, with Soda Ash is down in price the most by 16%, followed by Alumina down 5.9%, Glass Grade Sand and Glaze were down slightly versus one year ago.

Source international cost drivers report 2018 Q3

FUEL
Fuel prices in China were generally going up with LPG and Diesel Oil were significant in the range of 25% ~32% in the third quarter, and year over year, except for Petroleum is unchanged, the rest fuels are up significantly in price between 21%~29% one year ago.

OCEAN FREIGHT
The World Container Index was up 13.7% in the third quarter. Year over year, the World Container Index was sharply up 31% versus one year ago.

COST OF LABOR
Asian labor rates saw no change in the third quarter. Year over year, rates are up in most countries with Indonesia up the most (over 7%) followed by Thailand (up 6.6%), Vietnam (up 6.1%), China (up 5.2%) while India labor rate down 13.5%. Bangladesh was unchanged.

CURRENCY EXCHANGE RATE
For the third quarter, the USD is obviously strengthened slightly against the Thailand Baht, Chinese Yuan, Taiwan New Dollars, India Rupees, Indonesian Rupiah, Vietnam Dong and Bangladesh Taka. Year over year, the biggest gains for the USD are against the Indonesian Rupiah and India Rupees China RMB, Thailand Baht, Vietnam Dong and Indonesia Rupiah while its slightly weaker against the China RMB and Thai Baht.

CHINA TRADE (Data lags by one month)
– China Imports and Exports were both up by 11.36% & 4.61% respectively in the latest third months. Similarly, year over year, China Imports and Exports are up obviously by almost 15%.

– The China Producer Price Index (PPI) gone down 1.1% in the third quarter while the China Consumer Price Index (CPI) rose slightly. Year over year, the China PPI is down 3% while the China CPI is up slightly versus one year ago.

PURCHASING MANAGERS INDEX (PMI)
USA and Hong Kong PMI were both up slightly. Only China PMI was down 0.7% in the third quarter. Year over year, China PMI and Hong Kong PMI is down slightly while USA PMI is up slightly versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.
For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information. Thank you for your support.
Visit our Linked-In Page

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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EXPERIENCE THE FUTURE OF MANUFACTURING AND PRODUCT DEVELOPMENT

Category:Education,Metals

FABTECH 2018 – Manufacturing and Product Development Expo

Experience the future of manufacturing and product development. Join us at FABTECH from November 6-8 at the Georgia World Congress Center in Atlanta where the metal forming, fabricating, welding and finishing community come together to see what’s new and what’s next. Source International will be giving a presentation on Smart Manufacturing Product Development Process: Get to Market Faster on Thursday, November 8, 2018 from 10:30 AM – 12:30 PM.

FABTECH is where connections are made and where deals get done. See cutting-edge exhibits, learn from expert-led education, network with peers and more,.Over 1,500 leading manufacturers all in one place with solutions aimed at increasing productivity and profitability. Bring your team to experience three action-packed days of hands–on demos, new product launches, education, and networking. Whatever you need to advance and move forward in manufacturing, you’ll find it at FABTECH.  With targeted technical, operational, economic and managerial sessions, you’ll discover the solutions you need to improve productivity and increase profits. Network with peers, learn from top industry experts, exchange best practices and explore the latest technology and advancements in the industry.

Contact us for more information and set up a meeting with us in Atlanta to learn how Source International’s supply programs can add value to your new product development efforts.

So register today using this 30% discount code and we look forward to seeing you at FABTECH 2018!



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APICS 2018

Three Tips For Ensuring Quality At Outsourced Suppliers

Category:Education

APICS 2018 – Three Tips For Ensuring Quality At Outsourced Suppliers

Thanks to everyone who attended “Three Tips For Ensuring Quality At Outsourced Suppliers” at the 2018 APICS conference in Chicago October 2nd. The topic drew a great crowd with lots of good input and questions from the attendees. 

Ensuring quality At Outsourced Suppliers

EXCERPT: Manufacturing your company’s products at outsourced suppliers, whether onshore or offshore, isn’t just about lowering costs. Managing the quality of output among your outsourced suppliers is critical and can greatly impact your bottom line, your operational efficiencies, and your organization’s credibility. This session presents an aggressive, comprehensive three-step program to accurately assess the level of quality risk at an outsourced supplier; create effective, quality documentation that will ensure expectations are met on both sides; and to set up metrics that will measure supplier performance and provide a benchmarking system to gauge future improvement. By employing these three steps in a comprehensive and integrated program, your organization can effectively ensure the quality among your network of outsourced suppliers.

A copy of the presentation is available for download HERE.  Please feel free to share it. A lot is happening at APICS as they transition into life as ASCM.  FYI, the 2019 conference is scheduled to be in Las Vegas….hope to see you there!

And, please contact us for more information and to set up a meeting with us to learn how Source International’s supply programs can add value to your outsourcing efforts.

Also, please note that we’ll be presenting again at FABTECH in Atlanta on Thursday, November 8, 2018 from 10:30 AM – 12:30 PM on Smart Manufacturing: Product Development Process: Get to Market Faster. Hope to see you in Atlanta!  Register today using this 30% discount code and we look forward to seeing you at FABTECH 2018!

 


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sourceint.com

TEN MILES BLUE MOUNTAIN SUMMER PARTY

Category:Awards,Valued Client News

TEN MILES BLUE MOUNTAIN SUMMER PARTY

Aug. 25, Fujian Province, China.

Source International Xiamen Team held a fun summer party in the beautiful Ten Miles Blue Mountains of Fujian Province, which is famous for its sea of flowers and the air.

In the beautiful and fresh nature, the teams played three games. The first game was called kangaroo jump which need to put their feet into the bag. The second was “number convey game ” for testing everyone’s tacit understanding. The last and the most exciting game was “Rip the nametag off.

We feel the powerful force of energy, motivation, and teamwork. The championship team was awarded by Jeff.

We all drunk a toast to this happy time.

CONTACT US TO LEARN MORE ABOUT OUR SUPPLY MANAGEMENT PROGRAMS


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THIRD ROUND OF CHINA TARIFFS

Category:Education

CHINA TARIFFS UPDATE

July 10, 2018 -Trade Representative Robert Lighthizer has released a third list of thousands of additional goods that could face 10% china tariffs after a public comment period. It includes fruit and vegetables, handbags, refrigerators, rain jackets and baseball gloves. The move comes after the United States imposed the first round of 25% China tariffs worth $34 billion which kicked in July 6th. Beijing immediately responded with its own tariffs on US goods worth $34 billion. President Donald Trump in May directed Lighthizer to identify $200 billion in China product tariffs if China retaliated against US penalties that are meant to punish the country for intellectual property theft. The United States is already working on a second wave of China tariffs worth $16 billion. The third round of tariffs would go into effect sometime after August 30.

  • List 1 – Includes 818 tariff lines and is Valued at $34 billion worth of imports from China. Products falling under these tariff lines incur an additional duty of 25% beginning July 6.
  • List 2 – Includes 284 lines cover approximately $16 billion worth of imports from China. This list will undergo further review in a public notice and comment process, including a public hearing. After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties of 25%.
  • List 3 – Includes 195 pages and thousands of lines amounting to approximately $200 billion in imports from China and covers some consumer products which had yet to be hit.
Feel free to download the lists from the three links above and contact Source International for more information.
AmChamChina has set up a US-China Trade Dispute Portal, which will be updated regularly and serve as a central source for all the China tariff resources, documentation, and analysis related to US-China trade relations.  https://www.amchamchina.org/news/trade-dispute-portal

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source international cost drivers report 2018 Q2

ASIA MANUFACTURING COST DRIVER REPORT, 2018 Q2

Category:Cost Drivers Report Tags : 

ASIA MANUFACTURING COST DRIVER REPORT, 2018 Q2

The ASIA MANUFACTURING COST of commodity price trends in the second quarter are mostly up across the board with a few rare exceptions. Most grades of plastics, industrial metals, paper, ceramic and glass raw materials all rose in price while only some grades of rubber and alumina for ceramic production were going down in price. Wood prices meanwhile remained mostly flat and Textiles prices were mixed. Petroleum and fuel prices were up in this quarter and labor rates inched up in the lower wage countries. The US Dollar rose a little bit against most of the Asian currencies in Q2. China exports saw up in the quarter while China imports were down. The China PPI was up slightly while the China CPI was down slightly. The PMI USA indexes saw steady improvement in Q2 and PMI China saw maintained while PMI Hong Kong was down significantly. Below is a chart of the general trends and for all the details, please see the entire report.

source international cost drivers report 2018 Q2

DETAILS

PLASTICS & RUBBER

The cost of the General Purpose plastic resin prices were up marginally in the second quarter with PP, PVC, PS, Food Grade PP, HIPS and HDPE and only PE (LD400) down in price by 2.0%. The PET remained steady. Year over year, the trends for most material were up. PP is up the most (close to 20.00%) followed by PP GP, PS, PVC and HIPS are all up over 8%, and HDPE and PE both up marginally and the PET is steady in prices versus one year ago.

source international cost drivers report 2018 Q2

ENGINEERING PLASTICS

Most of the Engineering plastic resin prices were up in second quarter with PC , POM and ABS marginally and only Nylon down in price by 2.6% , the others remains steady. Year over year, PP is up a whopping 28.9% followed by PC up over 10% and Nylon(PA66) and ABS relatively increase a little, while PU Foam is down by 4.5%.Nylon (PA6)is only grade which remains unchanged in price versus one year ago.

source international cost drivers report 2018 Q2

RUBBER

Most of the Rubber prices were down in Q2, Latex and CR are both down marginally and only NBR is up by 6.00%, while BR and EPDM are steady. Year over year, CR is up most (over 21%) followed by EPDM is up over 17% and others are all down with Latex and Nature Rubber down over 19% in price versus one year ago.

source international cost drivers report 2018 Q2

CARBON STEEL

– For the second quarter of 2018, most of Carbon Steels were up in price with Steel Wire up by 11.5% and the others up marginally. Hot Roll Sheet Tube is exception with a slightly decrease by 2.7% and Cold Roll Steel Tube and Pig Iron is steady. Year over year, the trend is all grades of Carbon Steel go up in price with Pig Iron and Cold Roll Steel Tube up over 23% following by Hot Roll Steel Sheet and Hot Roll Steel Tube up by 18.9% & 17.6%, and the rest are go up all over 8% in price.

source international cost drivers report 2018 Q2

STAINLESS STEEL

In Stainless Steel, most grades were down in price between 2% – 7% with #403 down the most while #304&#201 up a little in the second quarter. Year over year, the trend remains up with most grades of stainless steel up in price on average about 9% versus one year ago except for #410 down by 3.3%.

source international cost drivers report 2018 Q2

ALUMINUM

Most aluminum grades rose in price in the second quarter while Aluminum 6061 were down close to 6%, and year over year, Aluminum 6061 go down in price by almost 22% and Aluminum 3303 down by 4.9%, while A00 and Aluminum 1060 are slightly increased in price.

asia manufacturing cost drivers 2018 Q2

INDUSTRIAL METALS

In Other Industrial Metals, only Zinc price was down in Q2 while Nickel was up most (close to 22%) and the rest of metals were up marginally. Year over year, all grades of the prices are up especially Nickel is surged by 54.6% in price versus one year ago.

source international cost drivers report 2018 Q2

WOOD

Wood prices are remaining steady in Q2. Year over year, MDF’s price is up over 15% and the others only upmarginally.

asia manufacturing cost

PAPER

Most of Paper Materials were up in price in the second quarter with Corrugated Board up in price by 7.8% followed by Kraft Paper, White Cardboard and Gray Cardboard are up marginally and only ArtP aper decreased by 2%. Year-over-year,Corrugated Board and Kraft Paper prices are still higher  up by 29.3% and 18.7% respectively. The others are up marginally except for Art Paper is unchanged in price versus one year ago.

asia manufacturing cost drivers 2018 Q2

TEXTILES

Textile fabric prices saw mixed in the second quarter with 100% Polyester fabric is down over 5% while Raw Cotton is up over 5% and the rest were unchanged. Year over year, all prices is up slightly which 100% Polyester Fabric is up by 8.1% and Raw Cotton andNon-woven PP Fabric are both up over 4% in price versus one yearago.

asia manufacturing cost drivers 2018 Q2

CERAMIC AND GLASS RAW MATERIALS

In Ceramic Raw Materials, only Alumina’s price was down slightly, while in Glass Raw Materials Soda Ash was up in price over 15% and Glass Sand remain steady. Year over year, the trend of all price is up and the Soda Ash is up most (close to 26%) followed by Feldspar and Kaolin is up on average 14% and the rest up marginally versus one year ago.

asia manufacturing cost drivers 2018 Q2

FUEL

Fuel prices in China were generally going up in the range of 13% except for China Petroleum is remain steady in the second quarter, and year over year, most of fuels are up significantly high which is up on average 35% versus one year ago except for China Petroleum remained steady. Fuel is an important part of asia manufacturing cost.

OCEAN FREIGHT

Ocean freight rates went up sharply in Q2. Year over year, the average composite index of the WCI, is US $1,375/40ft container, which is $157 lower than the five-year average of $1,532/40ft container all adding to the Asia manufacturing cost.

COST OF LABOR

Most of Asian labor rates saw unchanged while only China labor is up by 5.2% in the second quarter adding to Asia manufacturing costs.  Year over year, rates are up in most countries with Indonesia up the most (over 7%) followed by Vietnam, Thailand and China are both up over 5% while Bangladesh saw no change. Cost of labor in India is down significant by 13.5% versus one year ago.

CURRENCY EXCHANGE RATE

For the second quarter, the USD strengthened slightly against the Chinese Yuan, Thai Baht, Bangladesh Taka, India Rupees, Indonesia Rupiah, Taiwan New Dollars and Vietnamese Dong with the Thai Baht, Chinese Yuan, India Rupees and Taiwan New Dollars stronger by over 5%. Year over year, the biggest gains for the USD are against the Indonesia Rupiah and India Rupees while its slightly weaker against the Chinese Yuan and Thai Baht adding to the overall Asia manufacturing cost.

CHINA TRADE (Data lags by one month)

China Imports was decreased by 7.31% while Exports was up by 1.83% in the latest three months. Year over year, China Exports are up by 2% and China Imports are down by over8%. The China Producer Price Index (PPI) is up slightly in the second quarter while the China Consumer Price Index (CPI) down slightly. Year over year, the China PPI is decreased slightly while the China CPI is up slightly versus one yearago.

PURCHASING MANAGERS INDEX (PMI)

Hong Kong PMI is down by over 8% and USA PMI is up slightly. Only China PMI is unchanged in the second quarter. Year over year, China PMI and Hong Kong PMI is down slightly with HK down by over 5% and USA PMI is up slightly versus one year ago.

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing cost drivers. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 30 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.   Our Asia manufacturing cost driver report is one example how we can add value and make your supply chain in Asia run more efficiently and consistently.

For additional details, please contact one of our Operations Specialists about Asia manufacturing cost.    If you have any suggestions about additions or changes to this report, we’d love your feedback. Thank you for your support.

Visit our Linked-In Page

Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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shipping containers

SECOND ROUND OF CHINA PRODUCT TARIFFS

Category:Education Tags : 

SECTION 301 & 232 TARIFFS UPDATE

March 8, 2018 – Presidential Proclamations 9704 and 9705 on Adjusting Imports of Steel and Aluminum into the United States providing for additional 25% and 10% duties for steel mill and aluminum articles, effective March 23, 2018.

June 15, 2018 – Office of the United States Trade Representative (USTR) issued press release announcing its intent to impose additional tariffs on products imported from China. The additional tariffs are part of the U.S. response to China’s unfair trade practices related to “the forced transfer of American technology and intellectual property”.

List 1 – Includes 818 tariff lines and is Valued at $34 billion worth of imports from China. Products falling under these tariff lines incur an additional duty of 25% beginning July 6.
List 2 – Consists of 284 new tariff lines identified by the interagency Section 301 Committee as “benefiting from Chinese industrial policies, including the “Made in China 2025″ industrial policy”.  These 284 lines cover approximately $16 billion worth of imports from China. This list will undergo further review in a public notice and comment process, including a public hearing. After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties of 25%.
Feel free to download the lists from the two links above and contact Source International for more information.
And read more about the tariffs and their impacts on US businesses in this recent Industry Week article.
AmChamChina has set up a US-China Trade Dispute Portal, which will be updated regularly and serve as a central source for all the resources, documentation, and analysis related to US-China trade relations.  https://www.amchamchina.org/news/trade-dispute-portal

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Ceramic Industry Supplier of the Year Award

CERAMIC INDUSTRY SUPPLIER OF THE YEAR AWARD

Category:Awards,Valued Client News

The 2018 Ceramic Industry Supplier of the Year is Source International

By Susan Sutton, Editor-in-Chief

Manufacturers in the ceramic, glass, refractories, brick and related industries rely on the dedicated support of a multitude of suppliers in order to be successful. Ceramic Industry offers manufacturers the opportunity to acknowledge their valued suppliers by nominating them for our annual Supplier of the Year Award. Nominees are evaluated on a number of different qualities, including responsiveness, product options, reliability and overall performance (among others).  I’m excited to share the news that the 2018 Ceramic Industry Supplier of the Year is Source International!

Supplier of the Year

Source International (SI) was nominated by Mike Bunge, director of Global Resources for Libbey Inc. In his nomination, Bunge writes, “SI has helped us to remove multiple barriers in our supply chain through proprietary systems that provide far greater visibility into lead times, service levels, quality levels, and pricing.”

According to Bunge, who also nominated SI for last year’s Supplier of the Year Award, the company serves as Libbey’s agent in Asia providing bilingual personnel who are available to assist with operations, logistics and supply chain issues, including product development and engineering, the monitoring of manufacturing processes, and social responsibility and quality compliance.

“Source International helps us execute globally,” says Bunge. “It’s very difficult to have boots on the ground in many regions. It becomes quite expensive. But the Source International reps are knowledgeable regarding common processes and procedures, and are further trained on our specific products and processes.”

Supplier of the year

 Supplier of the Year

SI is a 30-year-old manufacturing and supply management company with about 80 employees. According to Jim Ullum, managing partner, the company has been working with Libbey for 10 years. A dedicated team, comprising merchandisers, engineers, quality technicians, among others, works directly with Libbey to ensure smooth operations that result in quality products.

“Our motto is, we create partnerships for our customers’ success,” says Ullum. “We become an extension of our customers. We don’t work for the suppliers; we work for Libbey. Everything we do is in concert with what they want to do and what their goals are. We feel like we’re Libbey employees, even though technically we aren’t.”

Supplier of the year

According to Bunge, SI’s size makes the company an ideal supplier for Libbey’s needs—large enough to provide the scope of support required while small enough to be flexible and adaptable when processes and procedures change. “I’m a big supporter of theirs because they’ve helped me, my team and our organization,” he says. “They’ve helped me and my team look good—internally to our organization—and they’ve helped our organization compete better on a global scale.”


Supplier of the Year

Ceramic Industry publisher Tom Fowler presented Source International with the 2018 Supplier of the Year Award on May 1, 2018 live from the show floor at Ceramics Expo in Cleveland.  Joe Simon, VP Finance, represented SI and Ryan Routhe, QA/Materials Engineer, Global Sourcing represented Libbey at the awards ceremony.  Ryan commented that SI helps Libbey to deliver great products to our customers….they are our feet and eyes and ears in the factories and take projects from beginning to end…just a great asset.  Joe thanked Libbey and Ceramic Industry on behalf of Source International for the award and gave special accolades to the SI team in Asia which are the “boots on the ground” and that helps Libbey deliver quality products, on time using the proprietary database operating system (SIS) where customers can monitor the status of its products in real time 24/7.

To view a video of the presentation, please follow this link:

Ceramic Industry Supplier of the Year Award Video

For more information on Source International and the supply management services offerings please contact us to speak with one of our Operations Executives.


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ASIA MANUFACTURING COST DRIVER REPORT-2018 Q1

Category:Cost Drivers Report

ASIA MANUFACTURING COST DRIVER REPORT-2018 Q1

In the first quarter, there was a clear commodity price trends with most of raw materials in Asia going down in price. Many grades of plastics, steel, aluminum, paper, ceramic raw materials and other industrial metals went down in price while rubber and wood mostly rose in price. Textiles prices meanwhile remained mostly flat. Petroleum and fuel prices backed off their sharp increases and labor rates up in the lower wage counties. The US Dollar lost a little bit of ground against some of the Asian currencies in Q1. China Imports and Exports both saw significant decreases in the quarter and the China CPI was up slightly while the China PPI was down. Furthermore, PMI index remaining above 50 and signaling an expanding economy. Below is a chart of the general trends and for all the details, please see the entire report.

PLASTICS & RUBBER

Most of the General Purpose plastic resin prices were down in the first quarter with PE, PP, PVC, PS, Food Grade PP and HDPE down marginally and only EVA up in price by 1.5%. The others remained steady. Year over year, most plastic prices remain down in price versus one year ago.  PS is down the most (close to 10%) followed by PE and PP which are both go down in price by over 6%. PP is only GP resin which is up in price by 2.8% versus one year ago.

Engineering plastic resin prices were mixed in Q1 with ABS prices drop the most by 7.5% and PC and PU Foam down slightly, while the others were all up slowly. Year over year, POM is up a whopping 30% followed by PC up over 11% and ABS relatively increase a little, while PU Foam, PA6 and Nylon show a decreasing tendency versus one year ago.

In the Rubber category, prices were mixed in Q1. SCR5 and Latex finally saw a drop in price, down almost 13 %, while Silicon Rubber and EPDM were up in price by 10% and 9% respectively following by CR increase by 6%. NBR was the only one remained unchanged. Year over year, except for CR shoot up in price by 30%, EPDM is up by 5.9%. Polybutadiene Rubber, SCR5 and Latex are all up on average 30% and NBR by 10.7% versus one year ago.

METALS

For the first quarter of 2017, all grades of Carbon Steel were down in price with Steel Wire and Steel Rib were down over 15% and the others decrease marginally. Year over year, the trend is most grades of Carbon Steel go up in price with Hot Rolled Steel Plate up over 23% following by Hot Roll Steel Sheet and Tinplate up by 15% & 9.8%, and the rest are go up marginally. Steel Wire is exception with a slightly decrease in price.

In addition, all grades of Stainless Steel still continued their down in price in the first quarter between 0.6% – 5.8% with 410 grade down the most. Year over year, the trend is  mixed with 201 grade and 410 grade are go down in price by 11.5% and 6.3%, while the rest are go up on average 4.8% versus one year ago.

Moreover, all aluminum grades drop in price 3%-5.5% in the first quarter. And year over year, Aluminum 6061 go down in price by almost 17% and Aluminum down by 6.3%, while A00 and Aluminum 1060 are slightly higher in price.

And, in Other Industrial Metals, only Nickel’s price was up in Q1 while the rest of metals were down in price. Copper increased by 9.8% and Brass Tube decline 5%. Year over year, all the metals prices are increase with Zinc up sharply by over 31% and Nickel up over 16% versus one year ago.

 

WOOD, PAPER & TEXTILES

MDF increase by 9.5% in price and Beech Hardwood slightly higher in Q1 and the rest had no changed. Year over year all the prices are go up with MDF rise the most by over 24% and the others up slightly.

At the same time, Corrugated Board continued rise while the others saw a little change in the first quarter, all were relief on average 5.4%. Year over year, all paper prices remain higher, with Corrugated Board remaining up by almost 21% in price followed by Art Paper and  Kraft rise by 15.5% and 14.8% respectively. Gray and White Cardboard only go up marginally versus one year ago.

Most of Textile fabric prices were remained unchanged the first quarter. Except Polyester Fabric went up and Cotton went down slightly. Year over year, most prices are higher, with Polyester and PVC Leather up in price the most at 14% and 6.7% respectively and the rest up more modestly versus one year ago.

CERAMIC AND GLASS RAW MATERIALS

In Ceramic Raw Materials, Alumina prices down by 1.75% in the first quarter and Quartz, Kaolin and Feldspar remained unchanged, while in Glass Raw Materials Soda Ash was down in price sharply over 17% and Glass Sand marginally. Year over year, Feldspar is up in price by over 33%, followed by Kaolin up 10%, Alumina up 6.5% and Quartz up 5.3%, while Glass Grade Sand is lower by 21% and Soda Ash and Glaze both keep in price steady versus one year ago.

FUEL

Fuel prices in China were decline generally by 10%-24.7% in the first quarter and year over year, China Petroleum, LPG Gas and Natural Gas are decrease on average 10%. Furthermore, China Diesel Oil increase by almost 12% and China Industrial Electric has no change versus one year ago.

OCEAN FREIGHT

Ocean freight rates down sharply in Q1 with Shanghai/ Ningbo/Xiamen/Yantian to Chicago down over 30% on average and to Long Beach down over 49%. Year over year, Shanghai/ Ningbo/Xiamen/Yantian to Chicago are down by 29% on average and to Long Beach down over 55%.

COST OF LABOR

Asian labor rates saw increase trend in the first quarter except for China and Bangladesh remained unchanged. And for Thailand, Indonesia and Vietnam which jumped by 15%, 7.5& and 6% respectively. Year over year, rates are up in most countries with Thailand up the most (over 15%) followed by Indonesia (up 7.5%), Vietnam (up 6%) and China (5%) while Bangladesh saw no sign to change.

CURRENCY EXCHANGE RATE

For the first quarter, the USD strengthened slightly against the India Rupees, Indonesia Rupiah, Vietnam Dong and Bangladeshi Taka and weakened slightly against the China Yuan, Thai Baht and NT Dollars. Year over year, the biggest gains for the USD are against the Bangladesh Taka, Indonesia Rupiah, India Rupees and Vietnam Dong while its weaker against the Thai Baht, China Yuan and NT Dollar.

CHINA TRADE (Data lags by one month)

China Imports and Exports were both down significantly in the latest three months owing to the Lunar New Year holiday, down by 23.5% & 14.4% respectively. Year over year, China Exports are shoot up by almost 43% and China Imports are up by over 6.6% from year ago levels.

US Imports and Exports were both up slightly compared to last month.

Vietnam and Bangladesh Imports and Exports were both increased significantly with Vietnam Exports rose over 38% and Imports up over 35.4%, and Indonesia Exports up over 18% and Imports up by 20%. On the contrary, Indian and Indonesian Exports and Imports were all down compared to last month.

The China Producer Price Index (PPI) decrease by 2% in the first quarter while the China Consumer Price Index (CPI) rose by 1.2%. Year over year, the China PPI is down 3.8 % while the China CPI is up by over 2% versus one year ago.

PURCHASING MANAGERS INDEX (PMI)

PMI Indexes saw little change in the first quarter with Caixin China PMI Index has been climbing steadily throughout the quarter while China Federation of Logistics & Purchasing shows the higher index and USA PMI Index remained stable. But all were above 50 in Q1. Year-on-year, CFLP PMI Index is little lower. On the contrary, Caixin China PMI index and USA PMI show upward trends indicating growth and an expanding economy.

Download entire report: SI MANUFACTURING COST DRIVERS REPORT,2018Q1

CONTACT US FOR MORE INFORMATION

Thank you for taking the time to follow trends in Asia manufacturing. Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices and website to learn more about us.

For additional details, please refer to the charts that follow or contact one of our Operations Specialists for more information.  Thank you for your support.

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Data for this report comes from the sources listed and while every attempt is made to be as comprehensive and accurate as possible, please consider that these are just general trends and you should not draw any specific conclusions from the data. We recommend that any information provided in this report be weighed against other sources and experts on the individual topics covered and\, accordingly, we make no specific claims nor assume any liability from the use of the data contained herein.


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International Women's Day

SOURCE XIAMEN CELEBRATES INTERNATIONAL WOMENS DAY

Category:Education,Uncategorized

Source International’s Xiamen Office honored all its dedicated women staff on International Women’s Day March 8th.  The day marks a special time to stop and say thanks to all the women on our life and all the love and beauty that they bring to the world every day.  China has celebrated International Women’s Day for many years and for many its becoming a very special day to say thanks.  In fact, Burger King China created an interesting campaign that we thought worth sharing.

Please contact us for more information.


Who We Are

Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management from Asia. We have a 25 year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff. We welcome the opportunity to show you how we can add value to your supply chain in Asia and invite you to visit our offices to understand better our procedures & the scale of our operations.

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