Inflation re-cycling: Chinese exporters pass higher costs on to customers around the world
Stella Qiu and Kevin Yao Fri, May 14, 2021, 9:58 AM
BEIJING, May 14 (Reuters) - A metal coatings plant in China's manufacturing hub has been hit by price increases of up to 30% for raw materials including steel, aluminium, thinner and paint since the Chinese New Year in February.
The firm has had no choice but to pass most of these higher costs on to its clients, including those in the United States, said King Lau, who helps run Dongguan-based Kam Pin Industrial Ltd, in Guangdong province.
"Our customers understand, because it is happening to many different kinds of industries including home appliances, mobile phones, vehicles," Lau said, referring to price hikes by Chinese exporters.
Investors are increasingly worried pandemic-driven stimulus measures could super-charge global inflation and force central banks to tighten policy, potentially curbing the recovery.
With their profit margins already tight, Chinese factories are passing on higher raw material and component costs to overseas clients, which will only reinforce the inflation loop.
In a sign of the higher prices filtering into retailers, U.S. consumer prices climbed the most in nearly 12 years in April.
"With supply-chain bottlenecks in many industries, and world demand steadily recovering, (Chinese) producers are increasingly able to pass on higher raw material costs to their overseas customers," said Frederic Neumann, co-head of Asian Economics Research at HSBC.
On DHgate, a Chinese e-commerce site that helps small Chinese manufacturers sell products overseas, prices of clothing and footwear have surged about 30% from a year earlier, while prices of transportation products such as scooters and bicycles have risen as much as 15%, the platform told Reuters.
The surge was due to the "drastic" rises in raw material prices and semiconductors, as well as more costly cross-border logistics, Beijing-based DHgate said.
The willingness of Chinese factories to pass on higher costs to protect their margins contrasts with the reluctance of Japanese manufacturers to raise selling prices and risk losing market share.
"Chinese exporters enjoy increasing pricing power in world markets," Neumann said.
Wang Zengda, manager at Trinx Bikes in Guangzhou, said for many of his factory's orders, delivery times are over a year out and customers are open to the idea of re-negotiating contracts as prices for aluminum and steel, used in bike frames, surge.
AMPLE POLICY ROOM
Surging producer prices have caught the attention of Chinese policymakers, with the State Council, or cabinet, on Wednesday calling for effective measures to cope with sharply higher commodity prices.
It did not say what the government would do to deal with rising costs.
John Johnson, chief executive, China, at consultancy CRU, said if Chinese authorities wanted to alleviate the impact of higher commodity prices there were a few policy levers they could pull, including releasing some commodity reserves, imposing price controls and levying penalties for hoarding.
"Higher Chinese (producer prices) will of course feed into higher import prices and CPI for the U.S. and other major economies, but that will not be a major policy concern for the Chinese government," Johnson said.
Rising global commodity prices and a low base last year could further drive up China's producer price index (PPI), already rising at its fastest pace in over three years, in the second and third quarter, the People's Bank of China (PBOC) said in a report on Tuesday.
PPI is mostly affected by global prices of crude oil, iron ore and copper, the PBOC said.
Futures prices for steelmaking ingredient iron ore on China's Dalian Commodity Exchange - an international benchmark - have surged 34% this year, while hot rolled steel coils used in manufacturing have jumped 38%.
But so far, the soaring producer prices have yet to impact on China's still mild consumer inflation.
"Given the relatively gradual recovery of consumer spending in China, many local producers struggle to pass on higher input costs (to Chinese consumers)," Neumann said.
Even some overseas clients are resisting the price hikes from Chinese factories, a few of which have stopped accepting new orders to stem haemorrhaging bottom-lines.
Xiliwang, a factory that manufactures kitchen ventilators in Guangdong's Zhongshan city, has temporarily stopped accepting orders for two weeks from May 15 due to volatile raw material prices.
"We just decided to wait for a while and see how prices move and policies change," a staff member surnamed Qin told Reuters. (Reporting by Stella Qiu and Kevin Yao; Additional reporting by Min Zhang, Tom Daly, Beijing Newsroom and Mai Nguyen in Hanoi; Editing by Toby Chopra)
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【 在 awaydream (昆仑天下) 的大作中提到: 】 : 中国政府改变政策，钢铁出口从退税变加税了， 直接控制产量， : 把通胀往外输出了。 : 美国大基建需要不少钢，自己挖煤慢慢炼吧，哈哈哈。 : 另外中国现在输出通胀的意愿和能力都很强。 : Inflation re-cycling: Chinese exporters pass higher costs on to customers : around the world : Stella Qiu and Kevin Yao : Fri, May 14, 2021, 9:58 AM : BEIJING, May 14 (Reuters) - A metal coatings plant in China's manufacturing : hub has been hit by price increases of up to 30% for raw materials including : ...................
大宗原材料粮食，石油，木材，金属，普涨50-100%。
中国物价飞涨。
一点点传递过来，等着美帝低价库存消耗光之日，就是物价暴涨之时啊。
我掐指一算，6月份的实际CPI按年率要破10%。
Fed看看的1.x%的魔术还能表演到什么时候吧。
CPI涨起来， 国债狗屎更没人要了，Fed自己拉屎自己吃吧。
接下来就要指责欧洲各国操纵汇率。。。
银子很快就要疯狂啦
这个还要看 中国能不能再出一个 温影帝。。 如果 还有一个 救美国就是九中国。 我看好股市 CPI..还是没问题了。。
Fed要加快吃屎的速度啊，否则股市就要死给Fed看了。
赶紧快点吃吧，都吃了吧。
不用担心，继续和中国贸易战，
easy win -蘑菇头
中国咋救
【 在 thjlll (haha) 的大作中提到: 】
: 这个还要看 中国能不能再出一个 温影帝。。 如果 还有一个 救美国就是九中国。 我
: 看好股市 CPI..还是没问题了。。
不可能了吧？
看看这些傻逼官员议员的讲话
基本上美国政坛台湾民进党化
比赛说狠话，不说中国不好就不是政治正确
这样还救？救活了让他咬死你？
【 在 thjlll (haha) 的大作中提到: 】
: 这个还要看 中国能不能再出一个 温影帝。。 如果 还有一个 救美国就是九中国。 我
: 看好股市 CPI..还是没问题了。。
加大买美国国债的力度，陪着Fed一起吃屎。
【 在 FoodGod (饭中淹) 的大作中提到: 】
: 中国咋救
Fed的嘴挺硬的，我看他编造1.X%的CPI编到什么时候。
就差被各国央行严重操纵的金银没涨了，这俩再涨起来，
Fed就连内裤都给扒了，光屁股上街了。
对于Tesla等高估值的泡沫股，the party is over了，
能跑赶紧跑了，跑晚了，等着为宴会买单吧。
不用担心，算CPI把飞涨的因子剔除掉就好
GDP换换算法，继续保持世界第一
【 在 awaydream (昆仑天下) 的大作中提到: 】
: Fed的嘴挺硬的，我看他编造1.X%的CPI编到什么时候。
: 就差被各国央行严重操纵的金银没涨了，这俩再涨起来，
: Fed就连内裤都给扒了，光屁股上街了。
CPI还是1.x%,Fed装,请继续装.
通胀不要看CPI，可以参考 2y or 5y breakeven rates
【 在 awaydream (昆仑天下) 的大作中提到: 】
: CPI还是1.x%,Fed装,请继续装.
中国应该赶紧抛国债,炸他一波.
炸完了,想买的过几天可以再收回来嘛,自己怂了吧唧的,
永远也站不起来.这时候不炸,等着美帝缓过来,就可以
安心享受被操得生活不能自理的日子了.
你这个是market expectation，不是现在的通胀。当然我也认为现在通胀数据很扯淡
【 在 littleshadan (littleshadan) 的大作中提到: 】
: 通胀不要看CPI，可以参考 2y or 5y breakeven rates
周末去costco逛了一圈， 常买的东西普遍涨价了。
香蕉从1.39涨到 1.59
鸡蛋最近一周，3.39 到 3.59
排骨以前的2.19或者2.xx 最近都是3.69
Ham也在涨
西瓜，草莓都是在涨。
反正没看到常买的东西价格下降的。
今年的costco的东西，我看到年底，估计比年初要普涨10%了。
Fed 的1.x% CPI误差也忒大了吧。
在美国吃的算小头
没脸畜，撒不要脸的谎
【 在 qihuuqihuu (胡说胡话) 的大作中提到: 】
: 银子很快就要疯狂啦
今天空了一些仓位，入了 PSLV
CPI不算食品和能源
【 在 awaydream (昆仑天下) 的大作中提到: 】
: 周末去costco逛了一圈， 常买的东西普遍涨价了。
: 香蕉从1.39涨到 1.59
: 鸡蛋最近一周，3.39 到 3.59
: 排骨以前的2.19或者2.xx 最近都是3.69
: Ham也在涨
: 西瓜，草莓都是在涨。
: 反正没看到常买的东西价格下降的。
: 今年的costco的东西，我看到年底，估计比年初要普涨10%了。
: Fed 的1.x% CPI误差也忒大了吧。
常用的菜油，从5.*到了7.59
【 在 awaydream (昆仑天下) 的大作中提到: 】
: 周末去costco逛了一圈， 常买的东西普遍涨价了。
: 香蕉从1.39涨到 1.59
: 鸡蛋最近一周，3.39 到 3.59
: 排骨以前的2.19或者2.xx 最近都是3.69
: Ham也在涨
: 西瓜，草莓都是在涨。
: 反正没看到常买的东西价格下降的。
: 今年的costco的东西，我看到年底，估计比年初要普涨10%了。
: Fed 的1.x% CPI误差也忒大了吧。
妈的，Fed真有本事，现在居然还能把十年期国债压在1.6%，
真是操纵市场的grand master！
你不知道cpi是不算食品 石油 房价吗？
【 在 awaydream (昆仑天下) 的大作中提到: 】
: 周末去costco逛了一圈， 常买的东西普遍涨价了。
: 香蕉从1.39涨到 1.59
: 鸡蛋最近一周，3.39 到 3.59
: 排骨以前的2.19或者2.xx 最近都是3.69
: Ham也在涨
: 西瓜，草莓都是在涨。
: 反正没看到常买的东西价格下降的。
: 今年的costco的东西，我看到年底，估计比年初要普涨10%了。
: Fed 的1.x% CPI误差也忒大了吧。
那个叫Core CPI，这个也是骗人的，更好操作而已。
general CPI含有这个，相对难操作一点。
【 在 stobit (stobit) 的大作中提到: 】
: 你不知道cpi是不算食品 石油 房价吗？
简单的说就是不包括吃，住，行
【 在 stobit(stobit) 的大作中提到: 】
: 你不知道cpi是不算食品 石油 房价吗？
以前吃住行的价格上涨会推高必要工资需求，从而影响核心CPI。
现在吃住行的需求由政府福利养着，最低工资标准远高于生活必须水平。所以吃住行价格和工业制造，社会服务成本毫无关系。更不要工业制成品依赖从中国进口，压根和美国制造无关了。
【 在 wavelet58 的大作中提到: 】
:
:简单的说就是不包括吃，住，行
:
:
:【 在 stobit(stobit) 的大作中提到: 】
:
:: 你不知道cpi是不算食品 石油 房价吗？
:
:
:
中国政府改变政策，钢铁出口从退税变加税了， 直接控制产量，
把通胀往外输出了。
美国大基建需要不少钢，自己挖煤慢慢炼吧，哈哈哈。
另外中国现在输出通胀的意愿和能力都很强。
Inflation re-cycling: Chinese exporters pass higher costs on to customers
around the world
Stella Qiu and Kevin Yao
Fri, May 14, 2021, 9:58 AM
BEIJING, May 14 (Reuters) - A metal coatings plant in China's manufacturing hub has been hit by price increases of up to 30% for raw materials including steel, aluminium, thinner and paint since the Chinese New Year in February.
The firm has had no choice but to pass most of these higher costs on to
its clients, including those in the United States, said King Lau, who helps run Dongguan-based Kam Pin Industrial Ltd, in Guangdong province.
"Our customers understand, because it is happening to many different kinds of industries including home appliances, mobile phones, vehicles," Lau said, referring to price hikes by Chinese exporters.
Investors are increasingly worried pandemic-driven stimulus measures could super-charge global inflation and force central banks to tighten policy,
potentially curbing the recovery.
With their profit margins already tight, Chinese factories are passing on higher raw material and component costs to overseas clients, which will only reinforce the inflation loop.
Prices of Chinese goods imported by the United States climbed 2.1% for the year ended in April, the largest 12-month advance since March 2012. Open https://www.bls.gov/news.release/ximpim.nr0.htm data.
In a sign of the higher prices filtering into retailers, U.S. consumer
prices climbed the most in nearly 12 years in April.
"With supply-chain bottlenecks in many industries, and world demand
steadily recovering, (Chinese) producers are increasingly able to pass on
higher raw material costs to their overseas customers," said Frederic
Neumann, co-head of Asian Economics Research at HSBC.
On DHgate, a Chinese e-commerce site that helps small Chinese
manufacturers sell products overseas, prices of clothing and footwear have
surged about 30% from a year earlier, while prices of transportation
products such as scooters and bicycles have risen as much as 15%, the
platform told Reuters.
The surge was due to the "drastic" rises in raw material prices and
semiconductors, as well as more costly cross-border logistics, Beijing-based DHgate said.
The willingness of Chinese factories to pass on higher costs to protect
their margins contrasts with the reluctance of Japanese manufacturers to
raise selling prices and risk losing market share.
"Chinese exporters enjoy increasing pricing power in world markets,"
Neumann said.
Wang Zengda, manager at Trinx Bikes in Guangzhou, said for many of his
factory's orders, delivery times are over a year out and customers are open to the idea of re-negotiating contracts as prices for aluminum and steel,
used in bike frames, surge.
AMPLE POLICY ROOM
Surging producer prices have caught the attention of Chinese policymakers, with the State Council, or cabinet, on Wednesday calling for effective
measures to cope with sharply higher commodity prices.
It did not say what the government would do to deal with rising costs.
John Johnson, chief executive, China, at consultancy CRU, said if Chinese authorities wanted to alleviate the impact of higher commodity prices there were a few policy levers they could pull, including releasing some commodity reserves, imposing price controls and levying penalties for hoarding.
"Higher Chinese (producer prices) will of course feed into higher import
prices and CPI for the U.S. and other major economies, but that will not be a major policy concern for the Chinese government," Johnson said.
Rising global commodity prices and a low base last year could further
drive up China's producer price index (PPI), already rising at its fastest
pace in over three years, in the second and third quarter, the People's Bank of China (PBOC) said in a report on Tuesday.
PPI is mostly affected by global prices of crude oil, iron ore and copper, the PBOC said.
Futures prices for steelmaking ingredient iron ore on China's Dalian
Commodity Exchange - an international benchmark - have surged 34% this year, while hot rolled steel coils used in manufacturing have jumped 38%.
But so far, the soaring producer prices have yet to impact on China's
still mild consumer inflation.
"Given the relatively gradual recovery of consumer spending in China, many local producers struggle to pass on higher input costs (to Chinese
consumers)," Neumann said.
Even some overseas clients are resisting the price hikes from Chinese
factories, a few of which have stopped accepting new orders to stem
haemorrhaging bottom-lines.
Xiliwang, a factory that manufactures kitchen ventilators in Guangdong's
Zhongshan city, has temporarily stopped accepting orders for two weeks from May 15 due to volatile raw material prices.
"We just decided to wait for a while and see how prices move and policies change," a staff member surnamed Qin told Reuters. (Reporting by Stella Qiu and Kevin Yao; Additional reporting by Min Zhang, Tom Daly, Beijing Newsroom and Mai Nguyen in Hanoi; Editing by Toby Chopra)
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Special Offer: $0 online stock, ETF and base options commissionshttps://finance.yahoo.com/news/inflation-cycling-chinese-exporters-pass-
135818591.html
负利率的国债都有人买，不要说1.x的国债了。
中国输出通胀 先要汇改
不然搞这个出口换汇 而不让出口商持有美元资产
不是搬起石头砸自己脚么
【 在 awaydream (昆仑天下) 的大作中提到: 】
: 中国政府改变政策，钢铁出口从退税变加税了， 直接控制产量，
: 把通胀往外输出了。
: 美国大基建需要不少钢，自己挖煤慢慢炼吧，哈哈哈。
: 另外中国现在输出通胀的意愿和能力都很强。
: Inflation re-cycling: Chinese exporters pass higher costs on to customers : around the world
: Stella Qiu and Kevin Yao
: Fri, May 14, 2021, 9:58 AM
: BEIJING, May 14 (Reuters) - A metal coatings plant in China's
manufacturing
: hub has been hit by price increases of up to 30% for raw materials
including
: ...................
涨吧，涨，涨得好！赶紧加工资，才是真的。
如果不能刺激和补贴美国本土钢铁工业,美国压根就没有大基建的需求。补补各地的高
速公路就完事了。
【 在 awaydream 的大作中提到: 】
:
:
:中国政府改变政策，钢铁出口从退税变加税了， 直接控制产量，
:把通胀往外输出了。
:
:美国大基建需要不少钢，自己挖煤慢慢炼吧，哈哈哈。
:
:
:另外中国现在输出通胀的意愿和能力都很强。
:
:
:
雾里看花