Reverse! Under the triple blow of raw material prices, exchange rates, and freight, China’s new export orders have continued to decline!

A few days ago, the export order index in the May PMI released by the National Bureau of Statistics and the China Federation of Logistics and Purchasing dropped 2.1 percentage points to 48.3%!

• Main pressure: Rising raw materialprices, exchange rate and freight costs

Judging from the May PMI data, the purchase price of raw materials continued to rise by 5.9 points from the previous month, reaching a new high since 2011. The increase in purchase prices is greater than the ex-factory price, corresponding to the compression of profit margins, and the pressure on the cost side of enterprises continues to rise. The main contradiction is the large increase and various cost pressures. Including the continuous appreciation of the exchange rate and the continuous increase in ocean freight, companies are not making money, so they dare not take orders, especially small and medium-sized enterprises.

• New export orders fell month-on-month

New export orders in May fell sharply from the previous month, mainly due to the recovery of economic activities in the United States and Europe, the convergence of the supply and demand gap, and the superimposed disturbance of the appreciation of the renminbi.

• Production capacity recovery in emerging economies accelerates

The recovery of production capacity in emerging economies is accelerating. At present, South Korea’s capacity utilization rate has returned to the level before the epidemic. South Korea’s exports on the first 20th of May were 53.3% year-on-year.