Dear everyone, our company belong to seamless stainless steel pipe for construction building field, there are some main factors affect our international business now, below are our details of the description.

Firstly, the dropping of the export rebate. There was an adjustment had happened in July this year, and our products’ export rebate was dropped from 13% to 5%, it had a big affection to our business, we should raise up 8% of our quotations to keep our benefits, maybe the export rebate will dropped into zero in the near future.

Secondly, the materials price are unstable, our main materials to produce the round bar are nickel and scarp steel, but the unstable price made us so troubles, the price had change frequently and even more one day had one price at some times. The price raise up then down, raise up then down, we can’t control and predict the final price in the near future if we sign up the orders.

Thirdly, our currency CYN(China Yuan Renminbi) also give us a high affection to our export business, You know very well, our export business calculation always depend on the USD, and the CYN became more and more valuable than ever before. Now the one Dollar USD convert to one Yuan CNY was 7.3980 today. And in 1st June 2007 the convert was 1:7.6497, if it’s a big order and should spend more time to produce, we will lost 0.2517 Yuan per Dollar. So bad news.

It’s also have some others factors affect our export business, but the three points of above I think it’s the main factors to block our international business, what about yours? Post and share your opinions, thank you in advance.

Best Regards!

Peter Zhou

Replying to [Mickey Mouse]:

Having a good market contact is the most important, a few percentage rebate is not that bad. I give you one example, our sister company in Europe is buying a seamless stainless steel pipe from a well known European manufacturer and this European company is out sourcing it to a Chinese company because the size we require is not a standard catalogue size, what they do is just to guarantee the quality. We have been buying this for the last 10 years, until recently I sourced it from a Chinese supplier via Alibaba, the quality is tested the same, guess what the price difference is 45%.

No matter how cheap you are or how good your quality is without having a good market it is useless, you just work and work and just get peanuts

Replying to [Keat Ta Kia]:

Hi, Keat Ta Kia, you had post a good information. You are right, nothing is important and the difficulty is temporary, just work hard and we will win in the near future.

Best Regards!
Peter Zhou

Hi Mickey

That is the ultimate level the Chinese exporter has to face under pressure from WTO. There should not be any subsidy for exports to compete in the Global market. So, you would be expecting zero rebate sooner or later.

Currency exchange fluctuations should be expected and factored for exporters. If the US Dollar to RMB exchange rate drops, the imports should be cheaper, and you will be paying lesser for materials and machinery. If your sales is domestic, i.e. within the country, then it is good for the foreign currency to be lesser in value compared to your home currency. You have also the choice to quote in your home currency, or other International currency instead of the US Dollar, but your company must have an account in the currency.

The high Crude Oil price affects every sector of the market, and it is global. This has more significant effect to the business than other factors.

SS

Replying to [Mickey Mouse]:the exchange unstable and the increase of cost.The foreign buyer did not consider these and keep the price as last year,which make us no any profit now.

Replying to [Street Smart]: I couldn't agree more