Chinaâ€™s mainland manufacturers plan to raise their export prices by 70 percent within the next year, according to China supplier survey.
The survey recorded the future outlook of a group of mainland Chinese manufacturers over the next year, noting projections about pricing, capacity and production trends. A year ago, 63 percent of manufacturers had expected to raise prices.
The survey contains data from 741 mainland China manufacturers of diverse industries, including makers of brake parts, cosmetics, health monitors and swimwear.
â€œHigher metal and plastic prices, higher domestic labor costs and a potential revaluation of the Yuan have resulted in many mainland China manufacturers predicting higher prices in months ahead,â€ said Michael Kleist, General Manager of Global Sources Content Development.
Due to increased competition, 52 percent of the survey respondents will limit price increases to around 10 percent or less.
Global Sources, a media company involved in facilitating trade between China and other trading countries through marketing, expects exports to the Middle East, Africa, and non-EU European Countries to grow over the next year. According to the survey, 29 percent of manufacturers say they are targeting these regions which are up 11 percent reported last year.
â€œSuppliers can expect lower margins and buyers can expect higher prices in the months ahead,â€ Kleist concluded.