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China projects strong Q2 exports

Q1 overseas sales rose nearly one-third. Exports are projected to continue increasing through the next quarter, with the canned food industry forecast to have one of the highest growth rates.

This is starting out to be a good year for China's export manufacturers.

China projects strong Q2 exports
China's exports of mobile phones increased 54 percent in Q1 2011, mainly because of rising demand in emerging markets.

Compared with the previous corresponding period, overseas sales for the first three months of 2011 increased almost 30 percent. The mobile phone, bags and luggage industries performed the strongest during the quarter and are expected to post substantial growth in Q2.

Other industries are also confident of healthy exports this quarter.

The earthquake that hit Japan in mid-March and the subsequent explosions and radioactive leakage at several nuclear power plants lowered agricultural output from nearby areas. This then drove up demand for canned vegetables, fruits, meat and seafood from China, particularly from suppliers in Zhejiang and Jiangsu provinces.

Customs statistics published in the newspaper Taizhou Daily show the city's exports of canned food to Japan jumped 198 percent in Q1 2011 to $7.5 million. This is expected to continue through the second quarter.

Concern over radiation contamination is also expected to boost shipments of fresh farm food to Japan. Building materials, furniture and textiles are other industries likely to see strong growth in Japan.

Footwear exports could improve significantly in Q2 2011 as well, as the EU cancelled the 16.5 percent anti-dumping duty on China-made shoes. This took effect on April 1, and suppliers are already seeing an increase in orders from the EU.

LED lighting product suppliers are also confident of strong sales in the second quarter. Demand for energy-saving alternatives remains high and is expected to boost exports in the segment.

Likewise, smartphones are expected to perform well in Q2. The majority of exports will be low-end units targeted at developing countries. But many makers in the Pearl River Delta region have also started releasing smartphones with their own brands, which they intend to sell internationally this year.

Q1 exports up 27 percent

Customs statistics show China's exports for the first quarter of 2011 increased 27 percent to nearly $400 billion.

In March alone, overseas sales were up 36 percent to $152.2 billion. This comes after February exports dropped 26 percent to $96.7 billion. The decline, however, was attributed mainly to the annual spring festival, which fell in that month.

China's primary export markets during the quarter were the EU and the US, which imported $76.6 billion and $66.1 billion, respectively. But destinations that saw the highest export growth were the ASEAN, South Korea and Brazil. Shipments to these destinations grew by 25 to 40 percent, much higher than the 17 and 21 percent increase in exports to the EU and the US.

Growth in the mobile phones segment was one of the highest in the period. Demand from emerging markets such as India, the Middle East, Africa and Southeast Asia was a major factor behind the 54 percent export increase in the category.

TCL, one of the country's major mobile phone makers, said its exports to Europe, the Middle East and Africa reached 36 million units in 2010. The company is anticipating overseas sales to hit 45 million units this year.

Bags and luggage is another industry that registered high growth, at 41 percent, in Q1 2011. Average unit prices increased as well, from $2.97 in 2010 to $6.25 during the quarter. Sales usually go up during the period as retailers stock up for the peak hiking and camping period between April and June, and the spring and summer seasons.


Note: This article "China projects strong Q2 exports" was originally published by Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through our e-magazines, trade shows and industry research.

All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates' respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.

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