NEWS I ROUNDUP China prices to grow except solar
EXPORTS in several mature and nascent industries in China are likely to stay strong in the months ahead even as prices remain on the upswing. This was highlighted in the latest survey of 900 exporters by Global Sources. 40% of surveyed respondents said they expect revenue from overseas shipments to increase by 10 to 20%, while 39 % anticipate a more than 20% rise. Nearly 15% of suppliers see moderate growth, estimating the increase to be not exceeding 10%. Only two percent foresee a reduction in export sales.
“A large number of China exporters are raising prices to shore up margins, which have been shrinking due to the rising cost of key materials and components, and labor. Suppliers, however, are justifying higher prices through significant improvements in product performance and overall quality. Manufacturers hope such modifications can strengthen their foothold in upscale markets, facilitating the shift from low-cost manufacture to the high end,” said Craig Pepples, Global Sources’ President of Corporate Affairs.
Most of the companies surveyed are capping quote increases at 10 percent, although the adjustment for some could be severe, exceeding 15 percent. Nearly one-third of respondents plan to implement minimal increases of less than
5 percent. In contrast, certain industries such as solar panels are expected to see price reductions in the next months, as suppliers strive to deflect competition from new entrants. The falling cost of key materials and components is helping companies to carry out the price cuts.
24 percent of suppliers said there is pressure to keep prices at levels to keep the customer base intact amid the entry of new industry players
10 percent cited the appreciation of the yuan against the US dollar as their key challenge
3 percent said stricter standards in their key overseas markets are adding to difficulties since compliance could necessitate significant investment in new or advanced machinery and specific types of materials
3 percent of respondents are coping with product homogeneity caused by design piracy or copying
Qatar Solar to build polysilicon plant
QATAR SOLAR TECHNOLOGIES (QSTec) has announced that it will be building a polysilicon production facility worth approximately US$1bn in Qatar.
QSTec’s plant will manufacture 8,000 metric tons per year of high purity solar grade polysilicon and is scheduled to begin operations in 2H 2013. The site is located on 1.2 million square meters of land in Ras Laffan Industrial City in the north east of Qatar.
Driven by Qatar’s long term vision for sustainability, QSTec aims to leverage the country’s natural resources and advanced research facilities to manufacture and develop solar technologies locally that will benefit not only Qatar, but will make an impact in protecting the environment globally.
Dr. Khalid K. Al Hajri, Board Member and CEO of QSTec said: “By utilizing Qatar’s resources today to make polysilicon, which in turn creates a variety of solar energy technologies and products, we are helping the global transformation towards a more diversified mix of clean energy solutions.”
“In Qatar we have been blessed with energy both above and below surface. We have tapped the energy below the earth through our LNG exports and now we are looking to the sun with a vision to tapping its unlimited potential,” he said.
QSTec’s Engineering, Procurement and Construction (EPC) contract was awarded to the Punj Lloyd Group, a leading EPC conglomerate headquartered in Gurgaon,
India. Punj Lloyd won the contract based on a competitive bidding process and has a major presence in Qatar executing key EPC projects for the oil and gas sector.
Launched in 2010, QSTec is a joint venture company formed between Qatar Solar (a wholly owned subsidiary of Qatar Foundation for Education, Science and Community Development), SolarWorld AG and Qatar Development Bank.
It is the first major investment in the renewable energy sector made by Qatar Foundation, underscoring the organization’s commitment to support Qatar’s transformation from a hydrocarbon-based economy to a knowledge and innovation-based economy.
Issue IX 2011 I
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Results indicate China manufacturers are emphasizing exports to the traditional markets of the EU and North America. More than three-quarters of companies interviewed chose these areas as their primary destinations for the rest of 2011 and until early-2012. An increasing number are widening their reach into alternative markets due to economic uncertainties in the EU and North America. Foremost among these options are non-EU countries in Europe, as identified by 10 percent of respondents. Companies are also looking at the Asia- Pacific region and the Middle East.
Positive about strong orders in the months ahead, manufacturers are boosting capital expenditure. The majority plan to invest up to 50% more in new and advanced machinery and technologies that enhance production efficiency. Global Sources interviewed 900 China exporters from the gifts and premiums, electronic components, fashion accessories, auto parts and accessories, telecom products, electronics, baby and children’s products and security products industries between April and September 2011. More than 40 percent of respondents are based in the primary manufacturing hub of Guangdong province. Twenty-three percent are from Zhejiang province and 13 percent from Fujian province.
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