EU'S Anti-Dumping Policy Or Extension To Chinese Shoes

Recently, the middle price of the RMB exchange rate against the US dollar has broken seven, and the RMB exchange rate has gone up, so that Chinese shoe manufacturers are facing export pressure for a long time.

In addition, the industry has widely said that the EU anti-dumping policy on Chinese leather shoes will also be postponed. Many exhibitors at the Canton fair said that "business is becoming more and more difficult, and European businessmen are afraid to place the order."

It is difficult for small and medium shoe companies to raise prices. It is understood that the "game" between quotations and RMB exchange rate has become the norm of many shoe making enterprises at this Canton Fair.

The person in charge of a leather shoes company in Dongguan told reporters that when they negotiate with buyers, they try to strive for settlement in non US dollar currencies. If buyers insist on settling in US dollars, the price for delivery in September will increase by about 7%, and the delivery at the end of the year will increase by about 10%.

Different from the direct rise in price, signing a hedging agreement is also a favorite practice among many shoemaking enterprises.

Qingdao Double Star Import and Export Co., Ltd., said that the company's offer is constantly adjusting, and there is no fixed increase.

Since the buyers sign long-term contracts, the delivery time is basically after the autumn. Therefore, during negotiations, they try to win the understanding of buyers, and stipulate hedging clauses in the contract, so as to make long-term settlement according to the current exchange rate, so as to lock down risks.

Influenced by various factors such as the appreciation of the renminbi, it has become an inevitable choice for many shoemaking enterprises to raise the price of products to ease the pressure of operation.

It is undeniable that many bargaining power of small and medium shoemaking enterprises is still weak. They are facing such a stalemate: if the price is not raised, the profits of the enterprises will shrink or even lose. If the price is raised, they will face the risk of losing customers.

Mr. Li of Anhui import and Export Corporation said: "as the cost goes up, the price increase will become a trend. After all, the effect of the enterprise's single soldier combat is limited. By raising the brand and improving the added value of the product, the overall price increase may be a way to break the deadlock."

Mr. Li believes that in the process, some low value-added shoemaking enterprises will be eliminated because they can not raise prices.

European businessmen have been significantly reduced. Moreover, the EU's rumour that the anti-dumping on Chinese leather shoes may be postponed has also worried the shoe manufacturers at the Canton Fair.

For this reason, a manager of AOKANG import and export company has said that over the past year, many European customers have lost to Vietnam, Pakistan and other places. "Because 16.5% of the tariffs are on European dealers, a larger customer in Italy has interrupted our cooperation because they are very demanding on price."

Even the full text told reporters that this Canton Fair rarely saw European merchants.