How difficult is foreign trade? Dedicated to us who are engaged in the solar energy industry

27/05/2021
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1. Aluminum ingot prices continue to rise

It can be seen from the figure that the price of aluminum ingots has risen by nearly 3,000 yuan/ton in the past month, and on May 7, the single-day increase exceeded 500 yuan/ton. The market is in short supply and prices are rising.

Solar Mounting Aluminum ingot
Aluminum ingot price trend chart

2. Soaring shipping costs

Taking China coastal bulk freight index as an example, as of May 7, the changes in freight rates of China to South America, Europe, the Mediterranean, South Africa, Bosnia and Herzegovina, and East-West Africa routes were 264.4%, 245.8%, 240.3%, and 177.5, respectively, compared to the same period last year. %, 157.9%, and 149.7%, which were higher than the gains of the composite index; and below the gains of the composite index were China vs. West America, Australia and New Zealand, East America, Southeast Asia, South Korea, and Japan, respectively 89.5%, 88.6%, and 81.7% , 78.2%, 46.9%, 22.9%.

Freight Soaring shipping costs
China Coastal Bulk Freight Index(CCBFI)

3. The appreciation of the RMB, the dollar exchange rate against the RMB continues to fall

The United States has always been a country that has been more severely affected by the epidemic. In response to the epidemic, the United States has introduced unprecedented fiscal and monetary stimulus policies, which has led to large fluctuations in the US dollar index.

Starting from the beginning of 2021, the US dollar index has begun to strengthen again, and the overall appreciation in the first quarter of 2021 has been 4.4%. After April 2021, the U.S. dollar index weakened again, depreciating nearly 2.9% on May 14.

monetary stimulus policies
Data source: Wind, Bank of Communications Research Center

In the face of rising materials, rising shipping prices and falling exchange rates, it is especially difficult for us in processing factories to bear the three mountains. We were frightened when we quoted, for fear that a high quotation will scare away customers, and a low quotation will lose money. Can anyone really know how hard we are? Foreign trader!

Is the end of the world to meet, meet why had met. May the force be with you! Come on foreign trader.

Foreign trade
Come on foreign trader

Image Source from Network

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