Posted by ASK SOURCE on | Comments Off on ASIA MANUFACTURING COST DRIVERS REPORT-Q2, 2017
ASIA MANUFACTURING COST DRIVERS REPORT
Q2 – 2017 (April, May, June)
Tracking The Trends Which Drive Costs In Asian Manufacturing
PLASTICS & RUBBER
All General Purpose plastic resin prices were down in the second quarter, PP(K8303), Food Grade PP, PE and PS down significantly (on average about 10.5%) and the others only down in price marginally. Year over year, PP(K8303) and Food Grade PP prices are down over 17% and 22% respectively, but most plastic prices remain up in price versus one year ago. HIPS is up the most (close to 25%) followed by PVC up 14% and HDPE up 7.5% and the others going down by small amounts.
Engineering plastic resin prices were more mixed with POM and PC prices up by 5% & 6% respectively, while Nylon, PA6 and PU Foam were down by 7% on average. Year over year, ABS is up in price the most at 35% followed by PC and PA6 up over 20% and the others only up in prices marginally while POM is the only grade which remains unchanged in price versus one year
Most of the Rubber prices were down in Q2, BR saw a huge drop in price, down over 35% and SCR5, Latex, EPDM prices all down over 10% and NBR down a little. CR is the only one which was up in price (close to 6%).Year over year, except for Latex which is lower in price over 51%, CR price is up over 53% and BR, SCR5, NBR are all up on average 15 % and EPDM up over 3% versus one year.
METALS
For the second quarter of 2017, prices for Carbon Steel were mixed, with Pig Iron and Cold Rolled Steel Plate down an average of 13% and Tinplate and Cold Roll Steel Sheet down an average of 4.4%. Prices, however, for Hot Roll Tubes and Cold Roll Steel Tube were up in price by over 18% while Hot Roll Steel Sheet and Steel Wire were up a little. Year over year, the trend is more even with all grades of Carbon Steel up double digits over 44% on
In the Stainless Steel part, most grades were down in price between 5% – 16% with 201 grade down the most while 202 grade 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 11% versus one year ago. Except for 304 grade down close to 15%.
Most aluminum grades rose in price 0.6% in the second quarter while ADC12 and A3380 were down close to 2%, and year over year, most prices are up between 3 and 7% while A380 is down over 2%.
In Other Industrial Metals, only Brass Tube’s price was down in Q2 while Nickel and Zinc was down by 8% &3% and the rest of metals were down marginally. Year over year, most metals prices are up over 20% except Nickel’s price is down slightly versus one year
WOOD, PAPER & TEXTILES
Wood prices inched slightly lower in Q2 except Beech which was up 3%. Year over year, Beech’s price up over 7% and the others only up
Meanwhile all grades of Paper Materials were up in price in the second quarter with Art Paper up in price by 13% followed by Gray Cardboard and White Cardboard up by 4%&5% respectively and the rest up in price marginally. Year over year, all paper prices remain higher, with Art Paper remaining up by almost 26% in price while Gray and White Cardboard are up almost 19%&15% and the others are on average by 2%.
Textile fabric prices saw little change in the second quarter with Raw Cotton, 100% Cotton Fabric and Poly/Cotton Fabric up slightly and the rest were unchanged. Year over year, all prices are higher, with Raw Cotton and 100% Polyester Fabric PP up in price the most at 21% and 13% respectively and the rest up slightly versus one year
CERAMIC AND GLASS RAW MATERIALS
In Ceramic Raw Materials, only Alumina prices was up slightly, while in Glass Raw Materials Soda Ash was down in price over 7% and Glass Sand marginally. Year over year, Alumina is up in price by over 32%, followed by Feldspar and Kaolin up 7%&2%, while Glass Grade Sand is lower over 15% and Quartz down in price marginally versus one year ago.
FUEL
Fuel prices in China were generally going down in the range of 21% in the second quarter and year over year, all fuels are up in price with Industrial Electric up significantly over 21% followed by Natural Gas and LPG Gas up on average 7% versus one year ago.
OCEAN FREIGHT
Ocean freight rates haven’t been updated yet in Q2.
COST OF LABOR
Asian labor rates saw little change in the second quarter with China Labor up almost 5% and the rest remained unchanged. Year over year, rates are up in most countries with India up the most (over 9%) followed by Indonesia (up 8%), Vietnam (up 7%), China (up 5%) and Thailand (up 1.6%) while Bangladesh saw little to no significant change.
CURRENCY EXCHANGE RATE
For the first quarter, the USD strengthened slightly against the Bangladesh Taka and weakened ever so slightly against the Chinese Yuan and Vietnamese Dong with the Thai Baht, NT Dollar and Indian Rupee stronger by about 5%. Year over year, the biggest gains for the USD are against the China RMB, Bangladesh Taka, Vietnam Dong and Indonesia Rupiah while its slightly weaker against the Thai Baht, NT Dollar and Indian Rupee.
CHINA TRADE (Data lags by one month)
China Imports and Exports were both up significantly by 16% & 59% respectively in the latest three months. Year over year, China Exports are up by almost 14% and China Imports are up by over 5%.
The China Producer Price Index (PPI) gone down 2% in the second quarter while the China Consumer Price Index (CPI) rose slightly. Year over year, the China PPI is up over 8% while the China CPI is down slightly versus one year
PURCHASING MANAGERS INDEX (PMI)
All the PMI Indexes have been climbing steadily throughout the quarter and all were above 50 at the end of the quarter. Year-on-year, all indexes show upward trends indicating growth and an expanding economy.
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.
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.
Posted by ASK SOURCE on | Comments Off on ASIA MANUFACTURING COST DRIVERS REPORT – Q1 2017
There were no clear commodity price trends in the first quarter with some raw materials in Asia going down in price while some continuing on their upward price trend begun in the fourth quarter of 2016. Many grades of plastics, rubber, steel, paper and ceramic raw materials went down in price while aluminum, other industrial metals, and glass raw materials mostly rose in price. Wood and textiles prices meanwhile remained mostly flat. Petroleum and fuel prices backed off their sharp 2016 increases and labor rates inched up in the lower wage counties. The US Dollar lost a little bit of ground against most of the Asian currencies in Q1 while ocean freight rates showed little change. China imports and exports both saw significant decreases in the quarter and the China PPI was up slightly while the China CPI was down. One very bullish sign is that all the PMI indexes saw steady improvement in Q1, 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.
ASIA MANUFACTURING COST DRIVERS REPORT – Q1 2017
PLASTICS & RUBBER
– Most of the General Purpose plastic resin prices were down in the first quarter with PP, PE, PVC, PS and PET down significantly (on average about 10%) and the others only down in price marginally.HDPE was the exception with a significant increase in price of a little over 8%.Year over year, most plastic prices remain up in price versus one year ago. PVC is up the most (close to 20%) followed by HIPS up over 19% and PS and PET which are up in price by over 8% each. Food grade PP is only GP resin which is down in price (almost 12%) versus one year ago.
– Engineering plastic resin prices were more mixed with PC and PA6 prices up by 15% & 25% respectively, while ABS, POM, Nylon and PU were down by 4% on average. Year over year, ABS is up in price the most at 36% followed by Nylon PA6, Nylon PA66, Nylon all up over 10% while POM is the only grade which remains unchanged in price versus one year ago.
– In the Rubber category, prices were mixed in Q1. Latex saw a huge drop in price, down over 28% and BR was also down sharply over 13% while CR was up 17%, followed by SCR5 up 16%, NBR up almost 10% and finally EPDM up a little over 6%. Year over year, except for Latex which is lower in price by 47%, CR, SCR5 and BR are all up on average 50% and NBR and EDPM were up the least on average by 6% versus one year ago.
METALS
– For the first quarter of 2017, prices for Carbon Steel were mixed, with Cold Rolled and Hot Rolled Steels down an average of 7% and Steel Wire down by almost 3%. Prices, however, for Cold Rolled and Hot Rolled Tubes were up in price by over 2% while Pig Iron was up almost 8%. Year over year, the trend is more even with all grades of Carbon Steel up double digits over 53% on average.
– Meanwhile all grades of Stainless Steel were down in price in the first quarter between 3% – 12% with 304 grade down the most. Year over year, the trend remains up with all grades of stainless up in price on average by over 29% versus one year ago.
– On the contrary, all aluminum grades rose in price 4%-8% in the first quarter, and year over year, all prices are up significantly between 10% and 20%.
– And, in Other Industrial Metals, only Nickel’s price was down in Q1 while rest of the metals were up in price by 7%-14%. Year over year, all the metals prices are up by over 34% on average with Zinc up the most (over 60%) versus one year ago.
WOOD, PAPER & TEXTILES
– Wood prices inched slightly higher in Q1 except MDF which was down 5%. Year over year the prices trend is same with MDF down 5.0% and the rest up slightly 1%-4%.
– Corrugated prices finally saw some relief in Q1 and dropped almost 16% following the second half 2016 run-up. White and Gray Cardboard and Art Paper continued their rise, up on average by another 15% while Kraft paper dropped almost 8%. Year over year, all paper prices remain higher, with Corrugated Board remaining up by almost 30% in price while all the others are on average by 15%.
– Textile fabric prices saw little change in the first quarter with Raw Cotton up 1%, Polyester down 5% and the rest were unchanged. Year over year, all prices are higher, with Raw Cotton and NonWoven PP up in price the most at 30% and 14% respectively and the rest up more modestly at 2% to 7% versus one year ago. CERAMIC AND GLASS RAW MATERIALS
In Ceramic Raw Materials, Alumina prices backed down by over 10% in the first quarter and Quartz and Glaze were down slightly, while in Glass Raw Materials Soda Ash was up in price sharply by 23% and Glass Sand marginally. Year over year, Alumina is up in price by over 33%, followed by Soda Ash up 31%, Feldspar up 7% and Kaolin up 3%, while Glass Grade Sand is lower by 21% and Quartz and Glaze both down in price marginally versus one year ago.
FUEL
Fuel prices in China were generally on the rise in the range of 8% in the first quarter and year over year, all fuels are up in price significantly by 6% to over 50% versus one year ago.
OCEAN FREIGHT
Ocean freight rates saw little changes in Q1 which is typical and there is little change from one year ago. However, the second quarter is expected to be volatile with many carriers looking for price hikes as many of the primary freight contracts will be renegotiated in Q2.
COST OF LABOR
Asian labor rates saw little change in the first quarter except for Indonesia, Vietnam and Thailand which jumped by 8%, 7% & 2% respectively. Year over year, rates are up in most countries with India up the most (over 9%) followed by Indonesia (up 8%), Vietnam (up 7%) and Thailand (up 1.7%) while China and Bangladesh saw little to no significant change.
CURRENCY EXCHANGE RATE
For the first quarter, the USD strengthened slightly against the Bangladesh Taka and weakened ever so slightly against the Chinese Yuan and Vietnamese Dong with the Thai Baht, NT Dollar and Indian Rupee stronger by about 5%. Year over year, the biggest gains for the USD are against the China RMB, Bangladesh Taka, Vietnam Dong and Indonesia Rupiah while its slightly weaker against the Thai Baht, NT Dollar and Indian Rupee.
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 15% & 39% respectively. Year over year, China Exports are down by almost 5% while China Imports are up by over 38% from year ago levels.
– The China Producer Price Index (PPI) rose over 4% in the first quarter while the China Consumer Price Index (CPI) decreased by almost 2%. Year over year, the China PPI is up over 13% while the China CPI is down by almost 2% versus one year ago.
PURCHASING MANAGERS INDEX (PMI)
All the PMI Indexes have been climbing steadily throughout the quarter and all were above 50 at the end of the quarter. Year-on-year, all indexes show upward trends indicating growth and an expanding economy.
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. DOWNLOAD THE ENTIRE REPORT
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.
Posted by ASK SOURCE on | Comments Off on ASIA MANUFACTURING COST DRIVERS REPORT – Q4 2016
Asia Manufacturing Cost Drivers were all on the rise in Q4 of 2016. It had to come eventually and the fourth quarter of 2016 certainly took the year out with a bang! Practically all raw materials tracked were on the rise with many showing the most significant increases in several years. Plastics, rubber, steel, brass, copper, nickel, corrugated paper, textiles, and ceramics prices were all up sharply (more than 10%), while wood and a few grades of aluminum, textiles were up only moderately (less than 10%). A few grades of aluminum, paper and ceramic/glass materials actually went down in price but they were few and far between. Petroleum products and fuels all rose sharply while labor rates were unchanged. The US Dollar was especially strong and appreciated against all of the Asian currencies. China imports and exports saw strong gains in the quarter and the China PPI and CPI were both up. And, lastly, all of the PMI indexes showed strength remaining well above 50 signaling an expanding economy in both Asia and the USA. See the chart of the general trends with green lights indicating positive trends, red lights indicating negative trends and yellow lights indicating caution relative to manufacturing costs. For all the details, please see the complete report, which follows.
ASIA MANUFACTURING COST DRIVERS REPORT – Q4 – 2016
PLASTICS & RUBBER
General Purpose plastic resin prices were all up significantly in the fourth quarter on average by over 15% lead by HIPS (+29%), PS (+21%) and PET (+18%). Year over year, all GP resins are up in price with HIPS and PS up the most (+54%) followed by PP and PVC both up over 40%. PE, HDPE, Food Grade PP and PET are up the least at 28%, 11%, 7%, and 4% respectively versus one year ago.
Engineering plastic resin prices saw more modest increases in the fourth quarter with Nylon (PA66) up 15%, PU Foam up 10%, POM up 6%, and Nylon PA6 up 3% while ABS was up a whopping 38%. PC bucked the upward trend and actually went down in price by 4%. Year over year, ABS is up 67%, Nylon PA66 is up 24%, PU foam up 10% followed by POM up 6% and PC up 5%. Only Nylon PA6 is down in price (22%) versus one year ago.
Rubber pries also rose in the fourth quarter as Polybutadiene (BR) Rubber took another huge jump up 42% more on top of the 29% increase in the third quarter. Natural Rubber and Neoprene (CR) were also up sharply by 17% and 23% respectively while EPDM rose 7%. Only Latex was down in price (11%). Year over year, rubber prices are mixed with BR (+120%), Neoprene (+24%), and Natural Rubber (+12%) all up in price while Latex (-34%), EPDM (-13%), and NBR (-5%) are down in price versus one year ago
METALS
In the fourth quarter of 2016, Carbon Steel prices rose sharply again another 30% or more on top of significant third quarter gains. Year over year, the trend is more pronounced with increases from 64%-98% versus year ago levels with Pig Iron up in price by 55%
All grades of Stainless Steel were also up in price in the fourth quarter between 24% and 38%. Year over year, the trend is also up with all grades up in price on average by 47% versus one year ago.
Aluminum grades on the other hand were the rare fourth quarter exception with prices actually dropping on average 5% in most cases with the exception of A00 Ingots, which rose 2%. Year over year prices, however, remain up on average by about 10% versus one year ago.
-Industrial Metals rose across the board in October and November before backing off in December with Brass, Copper, and Zinc ending the quarter up sharply by 15%, 17% and 11% respectively while Nickel saw a more moderate 3% increase. Year over year, all are well above year ago levels including Zinc up 48%, Nickel up 24%, Copper up 22% and Brass up 13% versus one year ago.
WOOD, PAPER & TEXTILES
Wood prices edged up 1% to 2% on average, which was the first increase this year.
Corrugated took a huge jump in the period up 50% and Kraft paper rose 10%. White and grey cardboard were slightly lower by 3%-4% and art paper was unchanged. Year over year, Corrugated is up 55%, Kraft up 10%, Art Paper 2% and both white and grey cardboard are both equal with year ago prices.
Textile prices also saw sharp increases with Polyester fabric up 18%, Nonwoven PP up 9%, T/C fabric up 5% and Cotton up only 1%. Year over year, all prices are higher except polyester which remains down in price by 24% versus one year ago.
GLASS & CERAMIC RAW MATERIALS
Alumina prices jumped another 41% in the fourth quarter after registering a 9% increase in the third quarter. Feldspar and Kaolin were also up in price by 7% and 3% respectively while quartz and glaze saw no change in prices. On the positive side, Soda Ash and Sand were down in price by 3% in the quarter. Year over year, Alumina is now up 78%, Feldspar and Soda Ash are both up 7% and Kaolin is up 3% while conversely Sand is down in price by 21% and Glaze is down by 2% versus one year ago.
FUEL
Fuel prices rose sharply in the fourth quarter by 30%-45% while year over year, fuel prices are up an average of 13%.
OCEAN FREIGHT
Ocean freight was one of the few items that saw no change in the fourth quarter, although our inside information says that some carriers got about 3% increase on contract renewals in the fourth quarter. Year over year, rates remain at historic lows 22%-43% below year ago levels. All indications, however, point to increases in 2017 after nearly 2 years of steady decreases to the current unsustainable levels.
COST OF LABOR
Asia labor rates saw no change in the fourth quarter and year over year, rates are up in most countries with Indonesia up the most (22%) followed by India and Vietnam (15%), and China (3%) while Bangladesh & Thailand stayed even.
CURRENCY EXCHANGE RATE
The USD gained strength in the fourth quarter appreciating 4% over the China Yuan, Taiwan Dollar, Indonesia Rupiah, and Thai Baht; 2% over the Vietnam Dong, and India Rupee and 1% versus the Bangladesh Taka. Year over year, the biggest gains for the USD are against the China Yuan (7%), India Rupee (3%), and Vietnam Dong (3%) while it was weaker against the Thai Baht (1%), Taiwan Dollar (1%), and Indonesia Rupiah (2%).
CHINA TRADE (Data lags by one month)
– China Imports and Exports were both up strongly in the three months ending in December, 10% and 3% respectively. Year over year, China Exports still remain down a fraction while China Import are up 6% from year ago levels.
– The China Producer Price Index (PPI) jumped 4.1% in the quarter while the China Consumer Price Index increased by 1%. Year over year, the China PPI is now up 10% for the year while the China CPI remains 1% above one year ago.
PURCHASING MANAGERS INDEX (PMI)
All of the PMI Indexes have been climbing steadily throughout the quarter and all were above 50 at year end. Year-on-year, all indexes continue to show upward trends indicating growth and an expanding economy.
FORWARD LOOKING ANALYSIS
2017 is shaping up to be a very interesting year for Asian manufacturing. The election of Donald Trump has lead to uncertainly as to the impact that his administration might have on global trade. Trump’s vague agenda in regards to USA infrastructure building, foreign trade restrictions and his populist agenda signal the basis for a continued strong dollar, inflationary pressures and a shakeup of foreign trade relations. The jury is still out and despite all the pre-election rhetoric, global economies could go either way, depending on how political momentum shifts in the Eurozone and which areas the Trump administration addresses first.
Key factors that are likely to impact commodity prices in 2017 include OPEC’s actions on oil supply, demand for Chinese goods and the overall global political climate. China saw somewhat of a manufacturing recovery through Q4 of 2016 with stronger than expected exports to Vietnam, Cambodia and Bangladesh. The India, Pakistan, Turkey and Indonesia economies were weaker and continued to suffer with currency and inflation issues. Ongoing themes include fluctuation in the global manufacturing and sourcing climate, rising labor costs, volatile oil and commodity prices, e-commerce and technological advancements in the supply chain combined with the massive consolidation in the container shipping industry, the geopolitical effect of the recent Brexit vote and the rise of ‘populist’ movements in the west are all significant impacts on global trade. As always, there is an increasing push for shorter lead times and lower prices. The status of major trade agreements such as the Trans-Pacific Partnership and NAFTA combined with geopolitical uncertainty, changing demographics, rapid technological advances, the rise of e-commerce, a lack of workers in China, volatile currencies, and increasing corporate social responsibility demands all lead to uncertainty in 2017. We’ll have to wait until Trump’s inauguration and the passing of the Lunar New Year holiday to get a better grasp on what the year will be looking like.
As of Q4, 2016, OPEC countries tentatively agreed to reduce oil supply by 2 million barrels per day in an effort to raise prices, which rose above the $40 per barrel range in the fourth quarter. Predictions are for relatively stable oil prices throughout the first half of 2017 though which should lead to more stable plastic and synthetic fabric prices (such as polyester), however, a lot depends on demand and production capacity.
Global rubber prices surged by close to 50% in the final quarter of 2016, mostly based on higher crude oil prices. This increase is prompting manufacturers to raise prices on both synthetic and natural rubber products, a trend which should continue into 2017.
Metal prices rallied through Q4 supported by a firm U.S. dollar and optimistic economic outlook. While the overall sentiment is bullish, volatility is expected into Q1 with uncertainty about the USA economic policy.
World cotton production and prices rose in 2016, which may put pressure on prices in 2H 2017, especially in light of increased China stockpiles. Wool prices ended 2016, with a 28% surge, a trend expected to continue through 2017. Leather prices also trended sharply up in late Q4 on the back of strong demand.
Excerpts from the Asia Inspection (AI) Q1 Barometer report provide additional insights:
“After several slow quarters in the wake of increasing working costs and strong currency, China picked up pace again in 2016 (+12.5% YoY). It even outpaced some of its declared challengers, as Vietnam saw a more modest +5% growth, and Thailand was flat YoY. South of Asia continues to grow as a manufacturing powerhouse, especially for the Textile industry, as India and Pakistan saw audits and inspection volumes surge respectively +30.5% and +18.2% in 2016.
“Overall, 2016 has seen a deterioration in manufacturing quality for consumer products worldwide: AI failure rate for product inspections in factories has grown by +8.8% in 2016 vs. 2015, with 35.8% of all inspections returning beyond acceptable level of defects.
“Contrasting with the degrading manufacturing quality levels in factory, 2016 has seen rather promising results on product safety and performance testing in lab: AI lab tests failure rates overall have decreased by -11.4% in 2016, with 3.3% of all tests failing. It would appear that while brands and manufacturers have gotten better at properly designing and conceiving their products to comply with international standards, it is when mass production starts that most quality issues arise. Furthermore, a look past this overall encouraging figure for lab test results shows a more disparate reality. For instance, as demand for REACH-related testing in the EU has skyrocketed this year, test results have not been that good, with failure rates tripling YoY. The highest failure rates are found around phthalates testing, with as much as 5.4% tests not meeting safety requirements, indicating potentially harmful products.”
“The state of structural safety remains troubling as 63% of factories audited in 2016 by AI were found in need of remediation, while the number of compliant factories has gone down from 41% in 2015 to 37%. Critical issues were found in 3% of factories, a slight improvement compared to the previous year. Meanwhile, ethical compliance continues presenting challenges: data collected from AI’s ethical audits during 2016 shows that a third of factories only were found compliant. While the number of critically non-compliant suppliers decreased (27% in 2016 vs. 41% in 2015), a large portion of suppliers are still ranked as “Amber”, indicating the need for improvement in the medium and long term. Among the top concerns in ethical compliance are a range of labor violations, including forced overtime, sexual harassment, child labor, forced labor, and exploitation of refugees. Environmental compliance was also uneven throughout global supply chains in 2016. According to AI data, over 36% of audits failed this year, a 5% increase from 2015. Overall, many brands are not prepared to make a commitment for ISO 14001 compliance right out of the gate, instead choosing to aim for the minimum legal standards applicable in their sourcing country. Nevertheless, more companies are committing to sustainability objectives in both short and long term, setting objectives for 2020 and beyond.”
CONTACT US FOR MORE INFORMATION
Thank you for taking the time to follow trends in Asia manufacturing. We’ll continue to provide objective reporting of the Asian Manufacturing Cost Drivers so you as supply professionals can make informed decisions for your companies.
Source International has operational offices in Louisville, Kentucky & Xiamen, China. Our passion is to partner with companies in supply management and manufacturing in Asia. We have a 25-year on-the-ground track record, a rigorous operating procedure, and a very well trained local staff and welcome the opportunity to show you how we can add value to your supply chain in Asia. Please take time to visit our offices and website to learn more about us. For additional details, please refer to the charts that are attached or contact one of our Operations Specialists for more information. www.sourceint.com
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 weighted 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.
Posted by ASK SOURCE on | Comments Off on Asia Manufacturing Cost Drivers Report – 2016 Q3
Asia Manufacturing Cost Drivers Report – 2016 Q3
Executive Summary-Production Cost:
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. Below is a chart of the general trends and for all the details, please refer to the entire report for your further information.
Thanks to all of our readers. Our ranks are growing with more and more readers signing up to understand more about production cost info and for access to our Asia Manufacturing Cost Drivers Report. Please note that we are moving from a monthly format to a quarterly report beginning with this report (3rd Quarter 2016). For additional details, please contact one of our Operations Specialists for more information. Thanks for your support.
Report Details-Production Cost:
PLASTICS & RUBBER
– General Purpose plastic resin prices were mixed in the third quarter with PP and PET down significantly while PVC and PE were up significantly in price. The other resins were unchanged. Year over year, PVC is up the most (over 25%) followed by PS up over 16% and PE and HIPS which are up in price by over 8% each. Food grade PP is down the most (over 20%) followed by PET down over 9% versus one year ago.
– Engineering plastic resin prices were mostly up in the third quarter with Nylon, PA6 and PC all up over 5% and ABS and POM were unchanged. Year over year, PA6 is down the most (over 33%) from one year ago while PC is up the most (over 4%) followed by Nylon up over 2% while ABS and POM remain unchanged in price versus one year ago.
– Synthetic rubber took a huge jump in the third quarter up over 29% since July. All the other rubber prices saw little change in the third quarter except Latex, which was down over 4%. Year over year, most rubber prices remain significantly lower, most by over 10% while only Synthetic rubber is significantly higher in price, up by over 23% versus one year ago.
METALS
– For the third quarter, most carbon steel prices are up significantly including Pig Iron. Year over year, the trend is more pronounced with almost all items up double digits.
– All grades of stainless were up in price in the third quarter between 2% – 8% except 410 which was flat. Year over year, the trend is also up with all grades up in price (on average by about 10%) versus one year ago.
– Likewise, all aluminum grades were up in price about 3%-4% while the ingot price softened slightly. Year over year, prices are up significantly between 10% and 45%.
– Zinc and Nickel were both up in price over 10% in the latest 3 months while Brass and Copper were only up slightly. Year over year, Brass & Copper remain below year ago levels by 9% and 1% respectively while Zinc is up in price almost 30% and Nickel is up a little over 8% versus one year ago.
WOOD, PAPER & TEXTILES
– Wood prices saw no change in the third quarter and year over year the prices are steady with year ago prices.
– Paper prices rose across the board in the period on average about 3% with the exception of Kraft Paper, which was flat. Year over year, Kraft is down in price almost 5% while all the others are unchanged or up 3% to 4%.
– Textile prices also increased with the exception of Polyester fabric. The increase in nonwoven PP of almost 5% was the highest increase for fabrics but raw cotton jumped almost 12%, which may signal additional price volatility for fabrics in the coming months. Year over year, all prices are higher except polyester which is down in price significantly (over 35%) versus one year ago.
CERAMIC RAW MATERIALS
Alumina prices jumped almost 9% in the third quarter while the rest of the ceramic raw materials saw no change in prices. Year over year, Feldspar and Kaolin remain unchanged while Quartz is up almost 3% and Alumina is down almost 10% in price versus one year ago.
FUEL
Fuel prices in China were generally on the rise in the range of 5%. Year over year, all fuels prices remain substantially below year ago rates.
OCEAN FREIGHT
Ocean freight was unchanged in the third quarter, however, the impact of the Hanjin bankruptcy is yet to he felt. Year over year, ocean freight
COST OF LABOR
Asia labor rates saw little change in the third quarter except for India which jumped 9%. Year over year, rates are up in most countries with India up the most (up 23%) followed by Indonesia (up 15%), Vietnam (up 13%) and China (up 3%) while Bangladesh & Thailand stayed even. Labor rates are a key factory in the overall production cost.
CURRENCY EXCHANGE RATE
For the third quarter, the USD weakened slightly except in regards to the RMB. Year over year, the biggest gains for the USD are against the China RMB and India Rupee while its weaker against the Thai Baht & the Indonesia Rupiah.
CHINA TRADE (Data lags by one month)
– China Imports and Exports were both up strongly in the three months ending in August, on average both were 5% higher versus June figures. Year over year, China Exports still remain down by over 3% and China Import are up by over 1% from year ago levels.
– The China Producer Price Index (PPI) jumped 2.1% indicating higher production cost in the quarter while the China Consumer Price Index decreased by 0.7%. Year over year, the China PPI is now up over 5.4% for the year while the China CPI is down 0.7% versus one year ago.
PURCHASING MANAGERS INDEX (PMI)
All of the PMI Indexes have been climbing steadily throughout the quarter and all were above 50 as September drew to a close. Year-on-year, all indexes show upward trends indicating growth and an expanding economy.
CONTACT US FOR MORE INFORMATION
Thank you for taking the time to follow trends in Asia production cost. 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-theground 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 full report or contact one of our Operations Specialists for more information. Thanks for your support.
Posted by ASK SOURCE on | Comments Off on Asia Manufacturing Cost Drivers Report – 7/16
Asia Manufacturing Cost Drivers Report – July 2016
Asia Manufacturing Cost Drivers – Summary
In regards to Asia Manufacturing Cost Drivers, July saw a couple tracked commodities post large increases in price. The largest being Cotton, posting a 17% gain since last month’s report. Nickel also saw big gains of over 10%. General Plastics were mainly down slightly, while Engineered Plastics remained steady. Steel & Iron prices were mainly up, in many cases over 8%, although two tracked varieties saw an over 9% drop in price. Aluminum was down negligibly across the board. China Labor rates continued their upward trend with an over 1% increase since June. Fuel and Power rates were down an average of 6%, while Currency Rates mainly continued to appreciate against the dollar. Although the USA PMI trended down about 1% this past month, the HK PMI was up over 4%—this marks good news for HK as it had been trending downward for sometime. China Imports were up around 1%, while Exports declined almost .5%. For further details, please see the entire report that follows.
Manufacturing Cost Drivers – Commodities
General Plastic prices remained flat or trended downwards in July with the exception of PVC which posted gains of nearly 3%. Both tracked varieties of PP were down nearly 5% while injection grade PE was down 1%. General Plastic Prices are now trending down more than up year on year with most varieties showing at least a 4% drop. Food Grade PP and High Impact PS are trending most favorable for manufacturers with 19% and 7% decreases, respectively. General Purpose PS has increased 9% for the year and PET is up almost 4%.
There is nothing to report on price fluctuations during this period for Engineering Grade Plastics as all prices remained flat. However, as far as year on year prices are concerned, PA6 is still trending down nearly 40%, while Nylon is down almost 10%.
Rubber Blanket prices posted a modest increase of just over 1% during the reporting period, while Synthetic Rubber jumped nearly 5%. All other tracked types of Rubber remained steady with the exception of Latex which posted a favorable downward trend of nearly 3%. Rubber prices in the last year are over 18% lower on average.
Carbon Steel prices mainly posted increases this month, some rather significant, with the exception of Hot Roll Steel Sheet and Steel Wire which both trended downward just over 9%. The biggest gainers were Cold Roll Steel Sheet and Hot Roll Steel Tube both posting over 8% increases in price since the June report. Year over year, Carbon Steel prices are a bit of a mixed bag with Hot Roll Steel Sheet and Steel Wire posting increases of 24% and 38%, respectively, while varieties such as Cold Rolled Steel Plate and Pig Iron are down 13% and 17%, respectively.
The Stainless Steel market mainly remained flat with the exception of Stainless Steel Sheet 201 trending down around 2% and Stainless Steel Sheet 304 trending up nearly 2%. Over the past six months, Stainless Steel prices continue to trend upwards and realize gains of just over 6% in overall quoted price.
In a marked departure from yearly trends, Aluminum prices all trended down this month with most tracked varieties posting approximately quarter percent decreases in price. The biggest decreases in price were realized in the ADC12 and A380 types of the material, which both posted just over 2% declines. Most types of the material continue to trend upwards year over year around 5% with the biggest increase in price still being that of Aluminum 6061 which is up around 38%.
In other metals, prices continued to increase across the board for the month of July. Nickel, again, posted the largest gains during the reporting period with an over 10% increase in price. The continued large increase in pricing for Nickel this month has now put it yearly even for the year just being down a little over 1%. The other largest increase was realized in the Zinc Alloy market and posted a gain of nearly 5%. Other tracked metals posted modest gains in price and continue to trend downward for the year, in most cases nearly 10%.
Wood prices remained the same and continue to be about 2% lower on average than a year ago. The only exception to this is MDF Board, which has remained completely unchanged all year.
Paper prices remained unchanged in July as they have for the past six months with the exception of Corrugated which is up nearly 1%. Kraft is down nearly 5% year on year while Art Paper is down nearly 4%.
Textile Fabrics trended up across the board in July with Cotton posting a tremendous increase of nearly 17%. July’s increase now puts Cotton prices up over 13% year over year. 100% Polyester and Non-Woven PP both saw increase of over 4% during the reporting period, although Polyester is still down nearly 33% for the year.
Ceramics prices remained unchanged in July. With the exception of Quartz, which is up about 6% for the year, Feldspar, Kaolin, and Alumina are all down posting decreases of 7%, 5%, and 20%, respectively.
Manufacturing Cost Drivers-Labor, Fuel, Freight, and Currency
Asian Labor Rates in Bangladesh and Thailand stayed flat during the reporting period as they have all year to date. China labor rates posted an increase of a little more than 1% and are now up over 2.5% year on year.
Fuel and Power prices were down across the board this past month with China Petroleum, Natural Gas, and LPG Gas all posting decreases of over 7%. Year on year fuel and power prices continue to show decreases in pricing of anywhere from 4% to 28%.
Ocean Freight rates remained flat during the reporting period potentially finding a current equilibrium compared to the large decreases over the last several months. Much of the overall capacity still remains unfilled, so any increases this year seem unlikely. Year over year Freight rates to the east and west coasts are down 21% and 43%, respectively.
With the exception of VND, all tracked Currencies appreciated against the USD in July with INR posting the biggest gain of over 1%. CNY and BDT posted modest gains against the USD, while TWD and THB hovered around 1%. The EUR continued to depreciate against the CNY and fell another .7%.
Manufacturing Cost Drivers-Key Indexes
While the Mainland China PMI index again remained fairly stable in July, the Hong Kong PMI index shifted upward to 50.6 posting an over 4% gain since June. The USA PMI decreased from 53.2 to 52.6 marking a just over 1% change.
While China Imports rose just under 1% for the month of July, Exports lagged behind and fell nearly .5%. It should be noted this data lags behind one month.
The China Producer Price Index (PPI) was up again recording a 0.2% gain while the China Consumer Price Index decreased 0.1%. The China PPI is now up over 2.3% for the year while the China CPI is up 0.5% for the year. These continue to be positive indicators for the Chinese economy as a whole despite slower growth than in years past.
For additional details on Asia Manufacturing Cost Drivers, exact figures or questions, please refer to the charts that follow or contact one of our Operations Specialists for more information.
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Source International Asia Manufacturing Cost Drivers Synopsis – June 2016
Commodity Prices
General Plastic prices were mainly flat in June. General Purpose PP varieties, Food Grade PP, and PVC saw no changes whatsoever in asking price. General Purpose PS, High Impact PS, and PET all saw increases of around 2%, while HDPE decreased by nearly 3%. Prices continue to be a mixed bag year over year with half our tracked varieties showing modest 1% gains up to 10% gains, while the other half of our tracked varieties are showing modest decreases of nearly 3% all the way up to large decreases, such as Food Grade PP and High Impact PS posting 17% and 14% drops, respectively.
Engineering Grade Plastics also largely remained flat in June with the exception of PA6 which continued its downward pricing trend and lost another 3%. With the exception of ABS, which has remained flat throughout the year, Engineering Grade Plastic prices are down across the board. The largest drop is still in the PA6 market and hovering around 40% year on year. Other varieties are down anywhere from 4% to 11%.
Although Rubber Blanket prices remained flat this month, Synthetic Rubber and Latex were down 2% and 3%, respectively. Tire Rubber jumped nearly 5% in June marking a recovery from last month’s 13% decrease. Prices for Rubber in the last year continue to be 25% lower on average across the board.
Carbon Steel prices were a mixed bag in June with varieties such as Hot Roll Steel Sheet and Steel Wire posting 11% gains, while other varieties such as Hot Roll Steel tube posted decreases of nearly 8%. During the past six months, Carbon Steel prices have seen an average increase in price of over 25% with the exception of Pig Iron which is now down 12% during the same timeframe.
Stainless Steel prices posted mainly modest increases or decreases this past month. Stainless Steel Sheet 304 gained the most in price showing an over 2% increase, while Stainless Steel Sheet 201 showed the largest decrease in price posting a nearly 2% drop. Over the past six months, Stainless Steel prices continue to be up across the board realizing an average 7% increase.
Aluminum prices continue to go up as they have all year. Although increases were modest this month across all tracked varieties, year on year gains have realized an average increase of over 11%. Leading the pack in Aluminum price increases is Aluminum 6061 which has posted a massive increase of nearly 38% in the past year.
In other metals, Zinc, Brass, Copper, and Nickel all saw increases in June. Nickel posted the largest gains during the reporting period with an almost 10% increase in price. It would appear Nickel is beginning to recover from its year on year decrease in price of nearly 36%. Zinc Alloy posted the second largest increase in price with a nearly 8% gain. Zinc is now up nearly 8% year on year. Although tracked Brass varieties posted an increase during this reporting period, they are still down 16% year on year.
Wood prices remained the same and continue to be about 2% lower on average than a year ago. The only exception to this is MDF Board, which has remained completely unchanged all year.
Paper prices remained unchanged in June as they have for the past six months with the exception of Corrugated which is up nearly 1%. Kraft is down nearly 5% year on year while Art Paper is down nearly 4%.
Textile Fabrics were largely flat with the exception of Cotton, which went up 4%, and Polyester Fabric which fell nearly 3%. Year over year most fabrics have remained flat, however Cotton has seen an almost 4% drop and Polyester Fabric has realized a nearly 35% decrease.
Excluding Alumina, Ceramics prices remained unchanged in June. Alumina again reversed its upward trend in pricing mentioned in the April report and lost another 2% since May. With the exception of Quartz, which is up about 6% for the year, Feldspar, Kaolin, and Alumina are all down posting decreases of 6%, 4%, and 25%, respectively.
Labor, Fuel, Freight, and Currency
Asian Labor Rates in Bangladesh and Thailand stayed flat during the reporting period as they have all year to date. China labor rates posted an increase of a little more than 1% and are now up over 3.5% year on year.
Reversing its rise in price from last month, China Diesel fell nearly 5% during the month of June. China Petrol and Natural Gas remained flat, while LPG gas posted an almost 2% gain. Year on year fuel and power prices continue to show substantial decreases in pricing of anywhere from 15% to 27%.
Ocean Freight rates remained flat during the reporting period potentially finding a current equilibrium compared to the large decreases over the last several months. Much of the overall capacity still remains unfilled, so any increases this year seem unlikely. Year over year Freight rates to the east and west coasts are down 21% and 43%, respectively.
The FOREX markets saw a lot of activity this past month with the RMB down 1% against the USD. This trend is expected to continue with some analysts predicting an eventual 7 RMB to 1 USD exchange rate in the near future. With the exception of INR, which was down .5% against the USD, the BDT, TWD, THB, and VND all posted gains against the USD—the largest being the THB with a nearly 2% gain over the USD during the reporting period.
Key Indexes
While the Mainland China PMI index remained fairly stable in June, the Hong Kong PMI index continued to slide downward and posted a 1.2% drop to 48.6. The USA PMI increased dramatically from 51.3 to 53.2 marking a nearly 4% change. This increase in the US PMI index should be good news for all tracked economies moving forward.
China Imports and Exports were all up significantly in June. Imports saw a 3% increase while Exports rose nearly 5%. Year over year Imports are now nearly flat while Exports are down nearly 5%. It should be noted this data lags behind one month.
The China Producer Price Index (PPI) was up again recording a 0.6% gain while the China Consumer Price Index remained virtually flat. The China PPI is now up over 1.9% for the year while the China CPI is up 0.8% for the year. These continue to be positive indicators for the Chinese economy as a whole.
For additional details, exact figures or questions, please refer to the charts that follow or contact one of our Operations Specialists for more information.
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Source International Asia Manufacturing Cost Drivers Synopsis – April, 2016
Commodity Prices
General Plastic prices saw a decrease in price for most varieties in April with the exception of General Purpose PP and PET which increased 3.6% and 2%, respectively. The biggest decline in plastics pricing was seen in High Impact PS, while Food Grade and HDPE varieties remained flat. Year over year, prices are a mixed bag with half our tracked grades showing increases ranging from slight above 1% to 9% and the other half showing decreases from 2.6% to 24.1%.
All Engineering Grade Plastics either saw a decline or remained flat during April. The largest decline was seen in the PA6 market with an overall decrease in price of 5.6%, while both ABS and POM remained flat as they have for the past six months. Year over year prices are also all down significantly or flat with PA6 registering a massive 32.8% drop.
Most Rubber prices saw substantial increases in price with the exception of Latex which decreased by 4.5%. Increases in Rubber prices for April ranged from 5.8% for Rubber Blanket to 15.4% for Tire Rubber. Although prices were mainly up in April, the prices for Rubber in the last year still remain 19.1% lower on average across the board.
Carbon Steel prices rose sharply in April. Hot Rolled Steel was up anywhere from 14.7% to 17.7%, while Cold Rolled Steel saw increases ranging from 12.8% to a hefty 29%. In the past six months, Carbon Steel prices have seen an average increase of 38.6%, although Pig Iron has dropped nearly 20% in the same period indicating that the increases may be hard to withstand going forward.
Stainless Steel prices were all up with the exception of Stainless Steel Sheet 430 which saw a 2% decline. Increases in Stainless Steel ranged from 0.6% to 13.8% with Stainless Steel Sheet 304 registering the biggest uptick in price. Over the past six months, Stainless Steel prices have been up an average of 6.3% across the board, although prices have been generally up slightly or down slightly year over year.
Aluminum prices continued to climb in April with Aluminum Ingots leading the pack with an 11.9% increase. Perhaps the most impressive trend in Aluminum pricing is the over 50.1% increase in Aluminum 6061. In the last six months, the lowest increase in price has been that of Aluminum 3003 with a 16.6% uptick. The six month average price increase in the Aluminum market is 27.5%.
In other metals, Zinc Alloy continued to post gains and rose 7.1% while Brass Tube decreased nearly 2% and Brass Rod increased marginally. Copper showed a slight increase of 1.6%. Nickel continued to rise, as in the previous 3 months, and went up 8.6%. Excluding Zinc, other metals are down significantly year over year by an average of 27.2% with the biggest decreases being realized in the Brass and Nickel markets.
Wood prices remained the same and continue to be about 2% lower on average than a year ago. The only exception to this is MDF Board, which has remained completely unchanged all year.
Paper prices remained unchanged in April as they have for the past three months with the exception of Corrugated which was up nearly 1% in the same period. Gray Cardboard has shown a 6.9% gain year over year despite prices remaining unchanged for over six months.
Textile Fabrics were largely flat with the exception of Cotton, which went up 3.6%, and Polyester Fabric which fell nearly 2%. Year over year most fabrics have remained flat, however Cotton has seen an 8.8% drop and Polyester Fabric has realized a 31.5% decrease.
Excluding Alumina, Ceramics prices remained unchanged in April. Alumina continued to rise in price and showed a 2% increase in overall price. With the exception of Quartz, which is up 5.5% for the year, Feldspar, Kaolin, and Alumina are all down posting decreases of 6.6%, 4.8%, and 22.8%, respectively.
Labor, Fuel, Freight, and Currency
Asian Labor Rates in China, Bangladesh, and Thailand stayed flat during the reporting period. In fact, Labor Rates in these markets have remained flat all year with the exception of China which has posted an increase of 2.2%.
The Fuel and Power sector seemed to stabilize in April compared to the heavy decreases seen in the past three to twelve months. China Petrol decreased slightly to 1.3% while Natural Gas and LPG Gas realized gains of 1.7% and 3.8%, respectively.
Ocean Freight rates remained flat during the reporting period potentially finding a current equilibrium compared to the large decreases over the last several months. A lot of capacity remains unfilled so any increases this year seem unlikely. Year over year Freight rates to the east and west coasts are down 21.8% and 42.6%, respectively.
With the exception of the Thai Baht, which rose 0.5%, all Asian Currencies saw decreases in the value of their currency. The Chinese Yuan was down 0.4% as compared to the US Dollar, while the Indian Rupee was down 0.3%. Asian Currencies are down nearly 4% year over year.
Key Indexes
Both China PMI Indexes were down in April with Mainland China seeing a 0.2% drop and Hong Kong seeing a 0.6% drop. The USA PMI dropped over 2% from 51.8 to 50.8. Although Mainland China PMI and the US PMI are above 50, they appear to be in decline and hovering closer and closer to below the 50 benchmark signaling contracting economies.
There was good news with regard to China Imports and Exports. Imports in China saw a 40% jump while exports realized a 27.5% jump. Year over year imports are down 7.4% while exports are up 11.2%. These numbers are encouraging as both imports and exports were down more than 10% just a couple months ago. It should be noted this data lags behind one month.
The China Producer Price Index (PPI) was up slightly recording a 0.6% gain while the China Consumer Price Index remained flat. The China PPI is up 0.3% for the year while the China CPI is up 0.9% for the year. Again, these are positive indicators pointing toward a potentially improving economy.
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SI Mfg Cost Drivers Synopsis – March, 2016
COMMODITY PRICES
General Purpose Plastic resin prices were up by over 10% on average in March, led by GP-PP which was up close to 23%, meanwhile, Food Grade PP & PET conversely moved down slightly. Year-over-year, most prices are still significantly lower on average by over 9% , led by Food Grade PP down by over 23%, and PS prices down by 13% while GP-PP is up 5% and GP-PS up by 13%..
Engineering Grade Plastic prices were mostly unchanged and/or favorable in March, with PA6 down by another 6% with the rest were unchanged.
Year-over-year price, except PC which is up slightly and ABS which is equal to year ago, the rest of the engineering resins are down in price on average by over 14%, led by PA6 by over 28%.
Most Rubber prices reversing the recent downward trend jumping by 1%-11% in March, with the exception of Latex which was down another 4%. All prices remain well below last year’s levels by 15%-35%.
Carbon Steel prices jumped again in March, with all prices up by over 13% on average except Pig Iron price which was flat. Year over year, all prices are significant lower by over 27% on average.
Likewise, most Stainless Steel prices were up in March, led by 430 & 201 grades up 10 to 7% respectively. Year-over-year stainless prices are lower by over 9% on average except stainless steel 410 grade which is higher by over 7% compared with one year ago.
Aluminum prices continued February’s upward trend with all prices up another 3%in March on average. Year-over-year most prices remain lower on average by 14% with the exception of Aluminum 6061 which is now priced 27% above one year ago.
In other metals, all prices were up in March by 2% on average, with the exception of Nickel which was unchanged. Year-over-year, Brass, Copper & Nickel all remain well below last levels by over 23% on average, with the exception of Zinc, which is slightly higher versus one year ago.
Wood prices remained unchanged in March and remain about 2% lower than year ago prices, although MDF board is back to even with year ago.
Also, Prices for most paper stocks were unchanged in March. Year-over-year, prices are higher by 3% on average, except Art Paper, which is equal to year ago.
Textile Fabrics were mostly flat, except Polyester which was down sharply by 14% and Cotton which was down by over 3%. Year-over-year, Polyester is down by 30% and Cotton is down by over 12%, while the rest of the textile prices are flat.
Except Alumina which moved up in price by over 6% the rest of Ceramics Raw Materials prices were flat in March. Year over year, Feldspar, Kaolin & Alumina Quartz are down by over 6%, 4% and 26% respectively, while Quartz bucks the trend, up by over 5% versus one year ago.
LABOR, FUEL, FREIGHT & CURRENCY
In Asian labor rates, the Thailand and Bangladesh labor rates were unchanged in March and year-over-year, while China Labor rates were stable in March but up over 4% versus one year ago.
All fuel prices continued significantly lower in March, following February’s favorable trends, down by over 2% on average. Year-over-year, likewise, all prices are significantly lower in price on average by close 25%.
Ocean Freight rates were unchanged in March. Year-over-year freight rates from China ports are down over 21% to the west coast and 42% to the east coast.
Asian Currencies, all Asian Currencies showed strengthened against the US Dollar in March with the Indian Rupee & Taiwan Dollar stronger by 3%, the This Baht & China Yuan stronger by 2% & the Bangladesh Taka & Vietnam Dong only fractionally stronger. -over-year, all Asian Currencies were weaker against the US Dollar by over 4% on average.
KEY INDEXES
As for PMI indexes, all PMI indicated strength in March, with both the China Purchasing Managers & the USA Purchasing Managers Index back above 50 benchmark while the HK China Purchasing Managers Index hovered just below the 50 mark.
Both China Imports & Exports decreased by another 18% & 28% respectively in February. Year over year, both imports and exports also are down by 13% & 25% respectively versus one year ago. (data lags by one month).
The China Producer Price Index (PPI) was up slightly in February while the China Consumer Price Index (CPI) also was up by a fraction. For the year, the PPI is down by 0.1% while the CPI is up by 0.9%. (data lags by one month).
For additional details, please refer to the charts that follow or contact with our Operations Specialists for more information.
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Asia Manufacturing Cost Drivers – February, 2016
COMMODITY PRICES
General Purpose Plastic resin prices were mixed in February with General Purpose PS & High Impact PS up sharply in price by over 11% while HDPE & PET conversely moved down by 6% & 4% respectively. Meanwhile, most other GP resins prices were unchanged. Year-over-year, most prices are still significantly lower on average by over 14% with the exception of PET which is even with year ago price, and PVC is up in price slightly.
Engineering Grade Plastic prices also were mixed but less volatile. PA6 was down by another 2% while Nylon moved up in price by 2% with the rest unchanged. Year-over-year price almost all engineering resins are down in price on average by over 10%, except PC which is up slightly and ABS which is equal to year ago.
Most Rubber prices continued favorable trends in February, with the exception of Synthetic Rubber, bucking the trend, up in price sharply by over 12%, while the rest were down on average by over 3% and all prices remain well below last year’s levels by 17%-40%.
Carbon Steel prices jumped in February, with Hot Rolled Steel and Steel Wire up almost 10% while Cold Rolled prices were mostly flat. With Pig Iron down over 6% though, it is believed that the hike in Hot Rolled Steel will be temporary. Year over year, all prices saw significant movements down by over 27% on average.
Stainless Steel prices were stable in February, with 430 grade moving up slightly, 304 grade down by a fraction while other grades remained unchanged. Year-over-year stainless prices are lower by over 14% on average except stainless steel 410 grade which is higher by over 12% compared with one year ago.
Aluminum prices reversed the recent downward trends, with prices moving up in February by 3% on average across the board. Year-over-year most prices remain lower on average by 16% with the exception of Aluminum 6061 which is now priced close to 26% above one year ago.
In other metals, Brass & Nickel were down in price in February by about 2%, while Zinc jumped by 6% and Copper was up only fractionally. Year-over-year, Brass, Copper & Nickel all remain well below last year’s levels by over 25% on average, with the exception of Zinc, which is higher by 2% versus one year ago.
Wood prices remained unchanged in February and remain about 2% lower than year ago prices, although MDF board is back to even with year ago.
Prices for Paper stocks were unchanged almost in February, except Corrugated, which was up by 1%. Year-over-year, prices were higher by 3% on average.
Textile Fabrics were mostly flat except Polyester which was down sharply by over 12%. Year-over-year, all textiles prices are lower by about 8% on average.
Except Alumina which moved up in price by over 10% the rest of Ceramics Raw Materials prices were flat in February. Year over year, Feldspar, Kaolin & Alumina Quartz are down by 2%, 3% and 30% respectively, while Quartz bucks the trend, up by over 10% versus one year ago.
LABOR, FUEL, FREIGHT & CURRENCY
In Asian labor rates, the Thailand and Bangladesh labor rates were unchanged in February and year-over-year, while China Labor rates were stable in February but up over 8% versus one year ago.
All fuel prices moved significantly lower in February, following January’s favorable trends, down another 10% on average. Year-over-year, likewise, all prices are significantly lower in price on average by over 25%.
Ocean Freight rates also moved lower in February, down over 6% to the west coast and 14% to the east coast, however several carriers were threatening a GRI in March. Year-over-year freight rates from China ports are down over 21% to the west coast and 42% to the east coast.
As for Asian Currencies, most Asian Currencies showed some strength in February,strengthened slightly against the US Dollar except the India Rupee & Vietnam Dong which were weaker by a fraction. Year-over-year, all Asian Currencies were weaker against the US Dollar by over 6% on average.
KEY INDEXES
Both China PMI indexes signaled a further contracting economy in February, with both the China and Hong Kong indexes down while the USA Purchasing Managers Index moved fractional positive from 48.2 to 49.5. Important to note is that all indexes remain below 50 signaling contracting economies.
Also, both China Imports & Exports decreased by another 30% & 20% respectively effected by arrival of the Lunar New Year holiday in January. Year over year, both imports and exports also are down by 18% & 11% respectively versus one year ago. (data lags by one month).
The China Producer Price Index (PPI) was up slightly in January while the China Consumer Price Index (CPI) also was up by a fraction. For the year, the PPI is down by 1% while the CPI is up by 1%. (data lags by one month).
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Asia manufacturing cost driver prices showed mixed trends in the first month of 2016. Plastics were up mostly in price while rubber prices continued to drop. Carbon steel & stainless grades were mixed while Aluminum and other metals were most down while wood, paper, ceramics, labor, freight and textiles were mostly unchanged. Energy prices continued to drop and the US Dollar continued to strengthen.
Specifically:
PLASTICS & RUBBER
Almost all General Purpose Plastic resin prices moved up in price by 3%-8% on average in January except PET & PVC which moved down by 7% & 1% respectively. Year-over-year, most prices are still significantly lower on average by over 14% with the exception of PET which is up in price by 4%.
Engineering Grade Plastic showed mixed price trends in January with ABS & POM stable, PA6 down by another 5% while Nylon & PC moved up in price by over 7% on average. Year-over-year price for all engineering resins are down in price on average by over 10%, except ABS which is up slightly.
Rubber prices continued strongly favorable trends in January down on average by over 5% and all prices remain well below last year’s levels by 16%-39%.
METALS
Carbon Steel prices were mixed in January, with cold rolled down another 2% – 5% on average, while hot rolled prices & steel wire moved up by 2%-8%. Year over year, all prices saw significant movements which are down across the board by an average of 30%.
Likewise, Stainless Steel prices were mixed in January, with 420 & 430 grades moving up by 1%-2% on average while other grades remained unchanged. Year-over-year stainless prices are lower by over 15% on average except stainless steel 410 grade which is higher by over 12% compared with one year ago.
Aluminum prices dropped another 1.8% down on average in January and remain lower on average by 20% with the exception of Aluminum 6061, bucking the trend, which is now priced over 21% above one year ago.
In other metals, Zinc, Copper & Copper were all down in price in January by another 2%, while Nickel’s price jumped by another 1% following December’s unexpectedly shot up by over 20%. Year-over-year, though, Brass, Copper & Nickel all remain well below last year’s levels by 20% on average, led by Nickel which is down over 36% in price.
WOOD, PAPER, TEXTILES & CERAMICS
Wood prices were still unchanged in January and remain about 2% lower than year ago prices.
Prices for Paper stocks were unchanged in January. Year-over-year, Kraft & Cardboards remain higher by about 1%-8%, while Corrugated & Art Paper are back to even with year ago prices.
In Textile Fabrics only Cotton & 100% Polyester Fabric saw changes in prices, down by another 5% on average in January, while all prices are lower by over 6% on average versus one year ago.
Except Alumina which moved up in price by 2% the rest of Ceramics Raw Materials prices were flat in January. Year over year, Feldspar, Kaolin & Alumina Quartz are down by 2%, 3% & 37% respectively, while Quartz bucks the trend, up by over 10% versus one year ago.
LABOR, ENERGY, FREIGHT, CURRENCY
In Asian labor rates, the Thailand and Bangladesh labor rates were unchanged in January and year-over-year, while China Labor rates were stable in January but up over 8% versus one year ago.
After the favorable downward trends in December, Energy prices remain a significantly lower trends in January, down by another 9% on average. Year-over-year, all fuel prices are significantly lower in price on average by over 37%.
Ocean Freight rates were stable in January, however several carriers were threatening a GRI in March. Year-over-year freight rates from China ports are down over 16% to the west coast and 33% to the east coast.
Asian Currencies were mostly weaker against the US Dollar in January except the Bangladesh Taka which strengthened by a fraction. Year-over-year, all Asian Currencies were weaker against the US Dollar by close to 6%.
MANUFACTURING COST INDEXES
As for PMI indexes, all index signaled a contracting economy in the first month of 2016, the two China PMI indexes showed contradictory numbers with the China Purchasing Managers Index moved down from 49.7 to 49.4 and the HK China Purchasing Managers Index moved up from 48.2 to 48.4, while the USA Purchasing Managers Index moved fractional positive from 48.0 to 48.2.
China Imports & Exports rose by another 14% on average in December while year over year, both imports and exports are down by 8% & 2% respectively versus one year ago. (data lags by one month).
The China Producer Price Index (PPI) was unchanged again in December while the China Consumer Price Index (CPI) was up by a fraction. For the year, the PPI is down by over 2% while the CPI is down only fractionally. (data lags by one month).
For additional details, please refer to the Asia Manufacturing Cost Driver charts that follow or contact one our Operations Specialists for more information.
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Asia manufacturing raw materials prices ended 2105 mixed in December. Plastics
were stable or up in price slightly while rubber prices continued to drop. Carbon steel also saw an increase while stainless grades were down. Aluminum and other metals were also up a bit but wood, paper, ceramics, labor, freight and textiles were mostly unchanged. Energy prices continued to drop and the US Dollar continued to strengthen.
Specifically:
PLASTICS & RUBBER
Engineering Grade Plastic prices were mostly unchanged in December, with the exception of PC up in price by almost 2% and PA6 down another 4% in December. Year-over-year price for all engineering resins are down in price on average by over 13%, except ABS which is up slightly, a little over 1%.
Rubber prices continued the favorable movement in December, down in price on average by over 2% and all prices remain well below last year’s levels by over 25% on average.
STEEL & METALS
Carbon Steel prices jumped up in price about 5% in December after months of dropping, however, prices year-over-year remain significantly lower in price by 26%-46%.
Stainless Steel prices improved another 2% in December and remain lower by almost 19% on average compared with one year ago, except 410 grade, which was up in price slightly in December and up in price by over 12% versus one year ago.
Aluminum prices jumped up in price by over 6% in December reversing the recent downward trend but year-over-year prices remain lower by over 25% on average. Aluminum grade 6061 is the exception and is now priced over 21% above one year ago.
In other metals, Nickel continued the favorable trends in December, down by over 2% while Brass, Copper and Zinc prices were up slightly. Year-over-year, all remain well below last year’s levels by over 21% onaverage led by Nickel which is down over 37%.
WOOD, PAPER & CERAMICS
Textile Fabrics prices were flat again in December too, except Cotton which was down by a fraction. Textile fabrics remain down in price by over 4% on average versus one year ago.
In Ceramics Raw Materials prices, Alumina saw a significant price decline of over 10% while Feldspar, Kaolin and Quartz prices were unchanged. Year over year, prices are mixed with Feldspar, Kaolin & Alumina down in price on average by over 14% while Quartz, on the contrary, which is up by over 10%.
LABOR, FREIGHT & CURRENCY
Asia manufacturing labor rates were stable in December, while, year-over-year, Thai and Bangladesh rates are unchanged while China Labor rates are up over 10% versus one year ago.
In Fuel & Power, December saw prices return to the downward trends, after jumping in November, with all prices were down by over 4% on average. Year-over-year all fuel prices are favorable, lower by over 5% on average versus one year ago.
Ocean Freight rates remained unchanged in December and year-over-year.
Most Asian Currencies were slightly weaker against the US Dollar in December, with the exception of India Rupee which is slightly stronger and year-over-year, all Asian Currencies were weaker against the US Dollar by about 5% on average.
ASIA MANUFACTURING INDEXES-PMI, IMPORTS/EXPORTS, PPI, CPI
All of the PMI indexes signaled contracting economies in December. The China Purchasing Managers Index moved up slightly from 49.6 to 49.7 and both the HK China Purchasing Managers Index and the USA Purchasing Managers Index moved from 48.6 to 48.2.
Both China Imports & Exports rose by over 9% & 2% respectively in November, however, both declined by almost 9% & 8% versus one year ago. (data lags by one month).
The China Producer Price Index (PPI) was unchanged in November while the China Consumer Price Index (CPI) was up by a fraction. For the year, the PPI is down by over 3% while the CPI is down slightly only fractionally. (data lags by one month).
For additional details, please refer to the charts that follow or contact one our Operations Specialists for more information on Asia Manufacturing cost drivers.
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November saw prices moving down in price for the most part. Specifically:
General Purpose Plastic resin prices were down in price another 2%-8% except PET which was unchanged. Year-over-year, most prices are still significantly lower on average by over 25%, led by General Purpose PP which is down by over 34%. PET is the notable exception and is actually up in price by over 9% year-over-year.
Engineering Grade Plastic prices also dropped another 2%-4% except ABS & POM which were stable. Year-over-year price for all engineering resins are down in price on average by over 13%, except ABS which is up slightly (less than 1%).
Rubber prices also showed favorable movement in November down in price on average by over 6%. And all prices remain well below last year’s levels by over 24% on average.
Carbon Steel prices continued the strongly favorable trend in November, with prices down another 4% on average. Year-over-year all Carbon Steel prices are significantly lower in price by 32%-46%.
Stainless Steel prices were more stable dropping only slightly about 1% on average in November. Year-over-year Stainless Steel prices remain lower by 14% on average compared with one year ago, except 410 grade which bucks the trend, up in price by over 11%.
Most Aluminum prices continued the favorable trends down by 1%-4% except 6061 grade which reversed the recent downward trend by shooting up over 30% in November. Year-over-year prices remain lower by over 25% on average except Aluminum 6061 which is now priced 16% above one year ago.
In other metals, November saw prices return the downward trends in November after the stick in October with Zinc & Brass down 7%, Nickel down 10% & copper down 9%. Year-over-year, all remain well below last year’s levels by over 22% on average.
Wood prices were remain unchanged in November, however, year-over-year, most prices are down on average by over 2% except MDF which is unchanged compared with one year ago.
Likewise, all Paper prices remained flat in November. However, year-over-year, prices are mixed with Kraft , White Cardboard & Gray Cardboard higher by about 4% on average, while Corrugated is lower by about 2% and Art Paper about even with last year.
Textile Fabrics prices were also flat, only Cotton was down by a fraction in November bringing its year-over-year price change by over 8% lower. Most other textile fabrics were unchanged in November and remain down in price by almost 5% on average versus one year ago.
In Ceramics Raw Materials prices, only Quartz saw a change, down in price by 2.7%. Year over year, prices are mixed with Feldspar, Kaolin & Alumina down in price on average by over 7%, while Quartz is up by over 10%.
Asian labor rates were stable in November, while, year-over-year, Thai and Bangladesh rates are unchanged while China Labor rates are up over 10% versus one year ago.
In Fuel & Power, all prices were up by 3%-17%, especially Natural Gas & LPG Gas, price which is up by 16.87% & 17.47% respectively. However, all fuel prices are significantly lower in price by over 20% on average versus one year ago.
Ocean Freight rates remained unchanged in November and year-over-year.
Most Asian Currencies were slightly weaker against the US Dollar in November, with the exception of Vietnam Dong which is slightly stronger and year-over-year trends, all Asian Currencies were weaker against the US Dollar by over 5% on average.
All of the PMI indexes signaled a contracting economy in November. The China Purchasing Managers Index moved from 9.8 to 49.6 and the HK China Purchasing Managers Index moved up slightly from 48.3 to 48.6, while the USA Purchasing Managers Index slipped below 50 moving from 50.1 to 48.6.
China Imports declined 10% in October and is 19% lower year-over-year. China Exports also declined In October by over 6% and are 7% lower year-over-year. (data lags by one month).
The China Producer Price Index (PPI) was unchanged in October while the China Consumer Price Index (CPI) was down by a fraction. For the year, the PPI is down by 3.8% while the CPI is down slightly by 0.3%. (data lags by one month).
For additional details, please refer to the charts that follow or contactone our Operations Specialists for more information.
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Most raw material prices and cost drivers associated with Asia manufacturing continued in October extending this year’s strongly favorable trend.
Specifically:
Almost all General Purpose Plastic resin prices moved favorable again in October except PET which also moved up again in price by 3.7%. Year-over-year, most prices are still significantly lower on average by over 23%, led by General Purpose PP which is down by over 34%. One notable exception is PET which is up in price by over 9% year-over-year.
Most Engineering Grade Plastic prices continued to drop in price in October by about 3% except ABS & POM were unchanged from September. Year-over-year price for all engineering resins are down in price on average by over 11%, except ABS which is up slightly (less than 1%).
Rubber prices also showed favorable movement in October down in price on average by 6%. And all prices remain well below last year’s levels by 14%-27%.
Carbon Steel prices continued the strongly favorable trend in October, with prices down another 3% on average. Year-over-year prices Carbon Steel is significantly lower in price by 30%-40%.
Stainless Steel prices also moved lower again in October except 304 grade which remained unchanged. Year-over-year Stainless Steel prices were lower by 14% on average compared with one year ago, except 410 grade which bucks the trend, up by over 12%.
Aluminum prices dropped by over 8% in October and year-over-year prices remain lower by over 20% on average.
In other metals, October saw Zinc, Copper & Nickel reverse the recent downward trend by shooting up close to 2% on average, while Brass dropped slightly. Year-over-year, Brass, Copper & Nickel all remain well below last year’s levels by 20% on average, while Zinc is up fractionally versus one year ago.
Wood prices were unchanged in October, however, year-over-year, prices are down on average by over 2.2% .
All Paper prices remained flat trends in October while year-over-year, prices are mixed with Kraft & Gray Cardboard higher by about 3%-6%, while Corrugated, White Cardboard & Art Paper are all lower by 1%-2%.
In Textile Fabrics only Cotton saw a change in price, down by a fraction in October bringing its year-over-year price change to 10% lower. Most other textile fabrics were unchanged in October and remain down in price by over 5% on average versus one year ago.
In Ceramics Raw Materials prices, only Alumina saw a change, down in price by over 3%. Year over year, prices are mixed with Feldspar, Kaolin & Alumina down in price on average by over 7%, while Quartz is up by over 7%.
Asian labor rates were stable in October, while, year-over-year, Thai and Bangladesh rates are unchanged while China Labor rates are up over 10% versus one year ago.
China Petroleum Price & China Diesel Oil prices were favorable in October down in price by 5% on average, while Natural Gas was flat and LPG Gas was up by a almost 3%. Year-over-year, all fuel prices are significantly lower in price by 33% on average.
Ocean Freight rates remained unchanged in October but year-over-year freight rates are up by over 7% to the west coast and 10% to the east coast.
Most Asian Currencies were slightly stronger against the US Dollar in October except the Bangladesh Taka & Vietnam Dong. But year-over-year, all Asian Currencies were weaker against the US Dollar by over 5% on average.
As for PMI, the China Purchasing Managers Index stayed at 49.8 again in October while the HK China Purchasing Managers Index moved up slightly from 47.2 to 48.3 (signaling a contracting economy), meanwhile the USA Purchasing Managers Index likewise moved lower slightly from 50.2 to 50.1 but stayed above the all-important 50 benchmark.
China Imports & Exports rose by 6.3% & 4.4% respectively in September while year-over-year, Imports and Exports declined by 20.5% & 3.8% respectively. (data lags by one month).
The China Producer Price Index (PPI) was unchanged in September while the China Consumer Price Index (CPI) was down by a fraction. (data lags by one month). For the year, the PPI is down by 4.2% while the CPI is unchanged.
For additional details, please refer to the charts that follow or contact one our Operations Specialists for more information.
Posted by ASK SOURCE on | Comments Off on Asia Manufacturing Cost Drivers Report – 9/15
September mostly material prices in Asia continued a significant movements.
Specifically:
General Purpose Plastic resin prices were mostly favorable again in September except PET which moved up in price by 3.85% and HDPE was unchanged. Year-over-year, most prices are still significantly lower on average by over 17% with the exception of PET which is up in price by over 5%.
Engineering Grade Plastic prices were continued favorable trends in September except ABS & POM which were unchanged. Year-over-year price for all engineering resins are down in price on average by 9%, except ABS which is up slightly.
Rubber prices were also favorable again in September down on average by 2% with the exception of Tire Rubber which was unchanged in September. And all prices remain well below last year’s levels by 7%-19%.
Carbon Steel prices continued the strongly favorable trend in September, all prices down another 3% on average. Year over year prices saw significant movements which are down across the board by an average of 35%.
Most of Stainless Steel prices moved lower again in September, down by another 5% on average except 201 grade moved up by 4.38% and 410 grade which remained unchanged in September. Year-over-year, except 410 grade which is lower by over 14%, rest stainless steel prices were lower by 16% on average compared with one year ago.
Aluminum prices were more stable dropping only slightly about 1% down on average in September but year-over-year prices remain lower by 6%-18%.
In other metals, most prices trended favorably in September with Nickel & Zinc Alloy leading the pack down, especial Nickel which was down in price by over 25% after several months of up & down movements. Year-over-year, though, Brass, Copper & Nickel all remain well below last year’s levels by 20% on average, led by Nickel which is down over 36% in price. Wood prices bucking the remained unchanged trends, most prices were down favorable by 2% in September and year-over-year, except MDF which was still unchanged in September and year-over-year.
All Paper prices were flat in September. Year-over-year, the prices were mixed with Kraft & Gray Cardboard remain higher by about 3-6%, meanwhile Corrugated, White Cardboard & Art Paper are all lower by about 2% on average.
Textile fabric prices were remained stable in September, while year-over-year, they remain favorable lead by Cotton which is down in price by over 17% versus one year ago.
Most Ceramics Raw Materials prices were dived by 5% on average in September while Quartz price was moved up by 2.78% in September. Year over year, the same trends by monthly likewise, Feldspar, Kaolin & Alumina are down in price on average by over 6%, led by Alumina by over 14%, while Quartz is upby over 7%.
In Asian labor rates, the Thailand and Bangladesh labor rates were unchanged in September and year-over-year, while China Labor rates was stable in September but up over 10% versus one year ago.
Fuel & Power prices in China showed movement trends in September, which China Petroleum Price & China Diesel Oil were moved up in price by over 6%, and Natural Gas & LPG Gas were down by 3% on average in September. Year-over-year, all fuel prices are significantly lower in price by 37% onaverage.
Ocean Freight rates remained unchanged in September but year-over-year freight rates are up by over 7% to the west coast and 10% to the east coast.
Asian Currencies were slightly stronger against the US Dollar in September except the Taiwan New Dollars & Thailand Baht which were weaker by over 1.5%. Year-over-year, all Asian Currencies were weaker against the US Dollar by close to 6% on average.
As for PMI, the China Purchasing Managers Index moving up from 49.7 to 49.8(signaling a contracting economy) while the HK China Purchasing Managers Index moved down from 47.3 to 47.2 (signaling a contracting economy), and the USA Purchasing Managers Index likewise moved lower but stayed above the all-important 50 benchmark.
China Imports declined by 10% in August & 13% year-over-year while the China Exports rose by close to 1% in August and declined by over 5% for the year. (data lags by one month).
The China Producer Price Index (PPI) was down fractionally in August while the China Consumer Price Index (CPI) rose slightly, same trends as June. (data lags by one month).
For additional details, please refer to the charts that follow or contact one our Operations Specialists for more information.
