May 11 Trade Risk Alert
Release time:
2020-05-11 17:35
Source:
The U.S. Department of Labor just announced that half of Americans in the epidemic are out of work.On May 8, the U.S. Department of Labor released U.S. employment data for April 2020, as a large number of jobs were lost due to the suspension of business activities caused by the quarantine. U.S. nonfarm payrolls fell by 20.5 million in April, the lowest since the end of the Great Recession. GAP, the US clothing giant, said it had spent $1 billion since February and had to stop paying more than 80000 employees to help itself. Adidas released the first quarter of fiscal year 2020 results show that net profit fell 96%, more than 70% of the global stores are closed. (Sina Finance)
Brazil's 1/4 sugar plant may be closed by the end of the year.Brazilian industry experts say that due to the impact of the new coronary pneumonia epidemic and the impact of lower consumption and oil prices, some sugar mills in Brazil no longer have the funds to repay short-term debt, and 1/4 sugar cane and alcohol ethanol plants in Brazil are at risk of closing before the end of the year. (Sina Finance)
The EU forecasts a 7.7 percent plunge in the eurozone economy.Süddeutsche Zeitung reported on May 6. According to the EU Spring Forecast report, the euro zone economy will shrink by 7.7 per cent this year due to the new coronavirus crisis and will recover somewhat in 2021, but will not fully recover lost ground. The European Commission released its spring forecast report in Brussels on Wednesday (May 6), saying that it is currently experiencing a depression of historic scale. Economic Commissioner Gentilone pointed out that Europe is experiencing an economic shock not seen since the Great Depression. This year, the 19-country eurozone economy will be in a severe recession; in 2021 it will return to 6.25 per cent; the gross domestic product of the 27 EU countries will fall by 7.5 per cent this year and return to 6 per cent next year. (Ministry of Commerce website)
The Czech Central Bank forecasts an 8 percent decline in the economy in 2020.Czech News Agency reported on May 7 that the Czech Central Bank predicted that the Czech economy would decline by 8% this year and grow by 4% in 2021 due to the epidemic. On the same day, the central bank cut interest rates again, cutting the two-week repo rate by 0.75 percentage points to 0.25 percent. (Ministry of Commerce website)
The outbreak hit Africa's largest regional free trade zone forced to postpone implementation.According to local media reports in Nigeria, Liman (Victor Liman), head of the Nigerian Trade Negotiation Office, revealed on the 7th local time that the African Continental Free Trade Area Agreement (AfCTA) is expected to be postponed until January 1, 2021. (First Financial)
India's financial system has once again exploded and the cooperative bank has become the hardest hit.India's central bank announced on May 2 that the operating license of India's CKP Cooperative Bank had been canceled after closing on April 30, 2020 due to deteriorating financial conditions. CKP Cooperative Bank has officially entered the stage of bankruptcy liquidation, which will be carried out in accordance with the relevant requirements. There are currently 1540 cooperative banks in India with deposits of around 5 trillion rupees. According to data, in the past five fiscal years, there have been 1000 cases of cooperative bank fund fraud in India, involving a total amount of 2.2 billion rupees. It is foreseeable that India's fragile financial system will face a new wave of shocks under the epidemic. (China Financial Information Network)
The new crown epidemic has forced India to shift its steel exports to China.The spread and blockade of the new crown epidemic has forced Indian steel producers to start shipping steel to China, the world's largest steel producer. After India began the blockade, the production of Indian steel companies for the domestic market is almost zero. But India gets a lot of orders from China, South Korea, Japan, the Middle East and Europe. It is reported that JSW Steel's steel plant capacity utilization rate in April was 38%, and most products are used for export. (Business)
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The company was founded in 1997, currently 4000 a variety of models of automobile brake discs. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting. The company's process equipment strength, Japan's new east automatic casting line 6, commercial vehicle brake disc automatic casting line 2. There are 56 processing lines -6 full-automatic one-word processing lines and 30 robot processing lines. Packaging cleaning line 5, spraying line 3.
Since the beginning of this year, the price of raw materials has risen sharply, sea freight has soared, and the difficulty of finding a box of shipping space has seriously plagued manufacturing companies. The current power curtailment has made companies even worse. Take our company as an example. Since the power limit in early September, the company's production capacity has dropped by about 50% on average every day. Exports have decreased by 0.02 billion yuan. The performance rate of orders in hand is about 50%. New orders were reduced by 10%. These data are the impact of the current power rationing on enterprises. If the power rationing situation is not alleviated, the impact on enterprises in the fourth quarter will be more serious.
Recently, Yunnan, Jiangsu, Qinghai, Ningxia, Guangxi, Guangdong, Sichuan, Henan, Chongqing, Inner Mongolia, Henan and other places have begun to carry out energy control measures to limit energy consumption.
The total power generation in 021 is not low. In the first half of the year, China's total power generation was 3871.7 billion kWh, twice that of the United States. At the same time, China's foreign trade has grown extremely fast this year. According to data recently released by the General Administration of Customs, in August, the total value of my country's foreign trade imports and exports was 3.43 trillion billion yuan, a year-on-year increase of 18.9 percent, achieving positive year-on-year growth for 15 consecutive months, further showing a steady and solid trend. In the first eight months, the total value of China's foreign trade imports and exports was 24.78 trillion billion yuan, up 23.7 percent year-on-year and 22.8 percent over the same period in 2019.
The impact of the neo-coronary pneumonia epidemic on global supply chains continues, with high international freight rates, container shortages and terminal congestion still unabated, and labor shortages exacerbating the dilemma. The outbreak of the new coronary pneumonia epidemic in 2020, due to the obstruction of international freight, soaring transportation costs, international trade in goods greatly hindered, triggering a supply chain crisis in many countries (regions), since 2021, the new coronary pneumonia virus variant strain raging, so that the supply chain has not yet fully recovered.
Statistics from the China Association of Automobile Manufacturers show that in the first seven months of 2021, China's cumulative automobile exports reached 1.002 million, an increase of 1.2 times year-on-year, but the month-on-month growth was only 9.8 percent, showing a shrinking trend. Moreover, commercial vehicle exports fell 11.6 percent month-on-month, of which new energy commercial vehicle exports fell 57.8 percent month-on-month. It is said that the main reason for the decline in automobile exports is the poor shipping channels.
Product recommend
At present, 4000 a variety of models of automobile brake discs, brake drums with an annual output of 10 million pieces. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting.
At present, 4000 a variety of models of automobile brake discs. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting.
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