2021, the tough year of cable industry!
2021-10-26
Even if Chinese foreign trading corporations were used to the appreciation of RMB, 2021 is really a tough year especially for cable industry! Also, the bad situation still becoming worse: the onshore RMB exchange rate was 6.3858 yesterday, which means RMB exchange rate kept going down from the beginning of 2021.
With QE was launched by Federal Reserve in USA, USD flooded to the world currency market, the price of raw materials kept going up from the last year, RMB was appreciated relative to USD make the life of Chinese cable industry worse and worse.
On the average, the gross profit rate of cable industry in China is already below 20%. This year, it supposed being around 5% for most cable manufacturer with the squeeze from raw material and appreciation of RMB, plus wage costs increased, energy costs increased and so on, many factories had to close their doors or just were declared bankruptcy!
For SINETECH, as a professional manufacturer of serial communication cable, USB cable, D-sub cable and so forth, we struggled to keep our head over the water so that we thanks for our clients understanding the
