Component Export Analysis – Affected by the trade war, the export in the first quarter is not as good as expected.
In the first quarter, the export demand for components exported by the trade war is still stable.
Looking back to February and March, due to the impact of trade wars such as anti-dumping and safeguard measures in India, many manufacturers have adjusted their shipping strategies. According to PV InfoLink’s latest customs data report, the total amount of Chinese components exported to India in February decreased significantly, from January. 1,196MW fell to 715MW, which affected the overall component exports to 2,406MW, a 25% decline from January. Although the Indian anti-dumping investigation was officially cancelled in early March, it still affects the export volume in March. It is expected that the export data will be reduced in March after the export data is released in March.
In addition to India’s trade war, the United States is also difficult to import components from China due to the tax rate of 201 this year. Other overseas markets; such as Japan, Australia, South America, Brazil, Mexico, United Arab Emirates and other countries, the demand is still stable recently, January-February 2018 The total export volume of Chinese components has reached 5.6GW.
Emerging markets are developing fast, major markets are reshuffled
After several years of rapid development, many demanding countries have shrunk due to subsidies reduction or policy adjustments. Demands such as Japan, the United Kingdom, and Germany have not been strong. In China, although there have been good demand performances in recent years, the light and busy seasons are clear. In the off-season, the inventory pressure and price collapse crisis that manufacturers have to bear are not trivial. Therefore, many manufacturers have begun to expand their markets, except for the actual overseas Outside the factory, it also turned its sales to emerging countries that responded to the country’s development needs, supported by policies, and rapidly growing in demand.
As can be seen from the table below, China’s component export rankings have changed significantly in the past two years. Compared with 2016, the demand for components in South America, the Middle East and other fast-growing emerging countries has increased significantly in 2017 and replaced the past tradition. Demanding countries have become the main target market for Chinese components.
After entering 2018, more emerging countries are among the export rankings, such as Argentina, Kazakhstan, Panama and Israel. It can be seen that Chinese domestic manufacturers are very active in expanding emerging markets.
In addition to taking advantage of the UAE project, Jingke has seen it in many emerging markets such as Mexico, Brazil, Jordan, Argentina, Panama, El Salvador and Kazakhstan. And Artes also has a certain market share in the UAE market, and there are component factories in Brazil, so there is more ink on the market, and other countries such as Chile, Panama, Mexico also have visibility. Also committed to the development of the South American market, the Oriental Sunrise is more operating in the Peruvian and Mexican markets.
In addition, many manufacturers who have recently used domestic demand as their main sales strategy have begun to deploy overseas. Chint has been very active in China’s domestic projects. Recently, this model has been extended to overseas operations, and project cooperation has been obtained in Morocco and Egypt. Participated in the bidding for the Jordan project. China Energy Conservation also began to develop overseas markets. It had a good performance in component exports in February, ranking first among the top 20 exporters. In addition to the government projects that have been cooperating with Indian developers earlier this year, the China Energy Conservation Future will continue to expand overseas.
Overall demand in the second quarter is better than expected. Emerging markets continue to grow.
In the first quarter, China’s component exports were affected by the trade war. The overall export volume was lower than the original forecast. However, it seems that India will not implement the large-scale trade tariffs in the near future. The demand will be extended to Q2, plus China’s 630 grabs. The overall market demand for the quarter is expected to be better than expected.
In recent years, Chinese manufacturers have gradually turned their attention to the expansion of the market, such as Japan, Europe and other countries with stable or shrinking demand, to the highly-developed South America, the Middle East and some Central Asian and African countries. By 2017, these emerging countries have occupied nearly half of China’s major export markets. Seat. Most emerging markets have strong policy support or development advantages in climate terrain. Demand has great potential for development. It will attract more manufacturers to invest in and find their niche markets. Mexico, Brazil are expected. Emerging countries such as the Middle East will continue to grow in 2018 and become an important market for Chinese component exports.
Source: pvinfolink
