Analysis of the export characteristics and problems of valve products in Zhejiang Province
摘要：Zhejiang Province is a major exporter of valves. According to statistics from Hangzhou Customs, in 2004, Zhejiang Province exported 600 million sets of valves, worth 660 million US dollars, accounting for 40.4% and 35.7% of China's valve exports and values. In the first quarter of 2005, the export of valves in Zhejiang Province maintained steady growth, with a total export of 140 million sets, valued at 160 million US dollars, an increase of 25.7% and 33.8% compared to the same period last year. The main characteristics of valve exports in Zhejiang Province
Zhejiang Province is a major exporter of valves. According to statistics from Hangzhou Customs, in 2004, Zhejiang Province exported 600 million sets of valves, worth 660 million US dollars, accounting for 40.4% and 35.7% of China's valve exports and values. In the first quarter of 2005, the export of valves in Zhejiang Province maintained steady growth, with a total export of 140 million sets, valued at 160 million US dollars, an increase of 25.7% and 33.8% compared to the same period last year. The main characteristics of valve exports in Zhejiang Province:
1、 General trade exports are the main focus. In the first quarter of 2005, the general trade export of valves in Zhejiang Province reached 150 million US dollars, accounting for 90.3% of the total valve export in Zhejiang Province.
2、 Private enterprises export large and grow rapidly, while export enterprises grow rapidly. In the first quarter of 2005, private enterprises in Zhejiang Province exported valves worth 60 million US dollars, an increase of 90.9%, accounting for 38.6% of the total valve exports in Zhejiang Province; Foreign invested enterprises exported valves worth 50 million US dollars, an increase of 41.7%, accounting for 30.3% of the total valve exports in Zhejiang Province. In the first quarter, a total of 533 enterprises in Zhejiang Province exported valves, a year-on-year increase of 43.7%, with an average export scale of 302000 US dollars.
3、 The export regions are diverse, with Europe and the United States being the main export markets. In the first quarter of 2005, Zhejiang Province exported valves to 119 countries and regions across five continents. Among them, exports of valves to the European Union amounted to 60 million US dollars, an increase of 29.8%, accounting for 37.1% of the total valve exports in Zhejiang Province; Exporting valves to the United States amounted to $10 million, an increase of 53.1%, accounting for 7.5% of the total valve exports in Zhejiang Province.
Although the export of valves in Zhejiang Province is steadily increasing, it still faces three major constraints in order to further expand the export scale:
1、 Copper is the main raw material for valve products due to rising production costs and difficulties in cost transfer. In recent years, international copper prices have been on the rise. In the first half of 2003, the price of electrolytic copper on the London Metal Exchange was around $1700 per ton, but by the end of March this year, it had risen to $3400 per ton, doubling in price. Affected by this, the price of brass bars in Zhejiang Province has also increased from RMB 14500 to RMB 15000 per ton to RMB 25000 to RMB 26000 per ton. At the same time, the shortage of electricity and the increase in transportation costs have also increased the production costs of enterprises. Although production costs continue to rise, due to fierce competition in the international market for valve products, there is limited room for price increases and cost transfer is difficult. In 2003, the average export price of valves in Zhejiang Province was $1 per set, while in the first quarter of 2005, the average export price was $1.1 per set, only a 10% increase. The profit margin of valve enterprises is constantly being compressed.
2、 The impact of the export tax rebate policy. The new export tax rebate mechanism implemented in 2004 has brought about the problem of "the faster the export growth, the heavier the burden on local governments". Some places have already discouraged the development of export-oriented enterprises, especially the restrictions on the export of products purchased from other regions by similar export enterprises. In 2004, 100 million sets of valves produced in Zhejiang Province were purchased and exported by non local enterprises (excluding Zhejiang Province's export data), a decrease of 3% from 2003
1、 General trade exports are the main focus. In the first quarter of 2005, the general trade export of valves in Zhejiang Province reached 150 million US dollars, accounting for 90.3% of the total valve export in Zhejiang Province.
2、 Private enterprises export large and grow rapidly, while export enterprises grow rapidly. In the first quarter of 2005, private enterprises in Zhejiang Province exported valves worth 60 million US dollars, an increase of 90.9%, accounting for 38.6% of the total valve exports in Zhejiang Province; Foreign invested enterprises exported valves worth 50 million US dollars, an increase of 41.7%, accounting for 30.3% of the total valve exports in Zhejiang Province. In the first quarter, a total of 533 enterprises in Zhejiang Province exported valves, a year-on-year increase of 43.7%, with an average export scale of 302000 US dollars.
3、 The export regions are diverse, with Europe and the United States being the main export markets. In the first quarter of 2005, Zhejiang Province exported valves to 119 countries and regions across five continents. Among them, exports of valves to the European Union amounted to 60 million US dollars, an increase of 29.8%, accounting for 37.1% of the total valve exports in Zhejiang Province; Exporting valves to the United States amounted to $10 million, an increase of 53.1%, accounting for 7.5% of the total valve exports in Zhejiang Province.
Although the export of valves in Zhejiang Province is steadily increasing, it still faces three major constraints in order to further expand the export scale:
1、 Copper is the main raw material for valve products due to rising production costs and difficulties in cost transfer. In recent years, international copper prices have been on the rise. In the first half of 2003, the price of electrolytic copper on the London Metal Exchange was around $1700 per ton, but by the end of March this year, it had risen to $3400 per ton, doubling in price. Affected by this, the price of brass bars in Zhejiang Province has also increased from RMB 14500 to RMB 15000 per ton to RMB 25000 to RMB 26000 per ton. At the same time, the shortage of electricity and the increase in transportation costs have also increased the production costs of enterprises. Although production costs continue to rise, due to fierce competition in the international market for valve products, there is limited room for price increases and cost transfer is difficult. In 2003, the average export price of valves in Zhejiang Province was $1 per set, while in the first quarter of 2005, the average export price was $1.1 per set, only a 10% increase. The profit margin of valve enterprises is constantly being compressed.
2、 The impact of the export tax rebate policy. The new export tax rebate mechanism implemented in 2004 has brought about the problem of "the faster the export growth, the heavier the burden on local governments". Some places have already discouraged the development of export-oriented enterprises, especially the restrictions on the export of products purchased from other regions by similar export enterprises. In 2004, 100 million sets of valves produced in Zhejiang Province were purchased and exported by non local enterprises (excluding Zhejiang Province's export data), a decrease of 3% from 2003
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