Construction and building materials, lighting products, and seafood are among the products experiencing strong overseas sales as a result of increased orders from Japan.
Japan’s need to rebuild after the destructive earthquake in March has fueled demand for building materials and construction tools from China. As reconstruction is estimated to take two or three years, suppliers in these industries are optimistic of strong exports to the country for the same length of time.
In the past couple of months, China’s shipments of plywood, emergency lights, work lights and excavator parts to Japan shot up at least 50 percent compared with the previous corresponding period.
As they are closer to Japan than makers in other provinces, plywood factories in Shandong and other areas in the northeastern coast have seen exports double.
Qingdao Winworld Industry & Trading Co. Ltd is one such company. Its exports of plywood to Japan increased more than 50 percent this year. In the past, Japan buyers had strict requirements on plywood. But now, even lower grade materials are selling well.
To finish orders on time, Qingdao Winworld’s factory has been running 24 hours per day since March. But the company expects demand to slow down in July, when buyers are likely to have sufficient plywood stock.
Despite extended manufacturing hours, however, some suppliers are unable to meet the required volume given the tight lead times. Buyers sometimes need to order from three or four makers, even those based in the southern coast, to ensure sufficient supply.
Emergency and work lights maker Ningbo Best Parts Co. Ltd now exports all of its output to Japan. So far, only 30 percent of the orders it has received have been shipped out, with the bulk still being manufactured. Buyers procured, on average, 10,000 lights staggered into weekly deliveries. The only requirement now is that all products must carry the CE mark.
Taking advantage of the high demand, many factories are increasing prices for rush deliveries. Some companies are charging 100 percent more for shipments to be delivered in one or two weeks.