“Chinese export prices jumped by 5% in April from a year earlier, the largest increase since April 2023, data by China’s General Administration of Customs showed.”
“The increase, largely due to the oil price shock impacting manufacturing inputs and prices, comes after years of low export prices out of China. For years, Beijing has relied on cheaper goods to maintain its leadership in exports.”
“China’s… export price Harmonized System 2-digit (HS2) index tracks monthly and yearly unit value changes for nearly 100 Chinese exported goods. This index showed that the export [prices] of mineral oil, including petroleum, surged by 22% in April from a year earlier, while fertilizer export prices soared by 17%, as the Iran war upended global oil, gas, ammonia, and urea trade with tankers stuck at the Strait of Hormuz.”
“In addition, the global AI frenzy and data center buildout have hiked the prices of electronics and semiconductors. The export price of China’s electronics and electric machinery jumped by more than 20% in April compared to the same month last year, according to the official Chinese data analyzed by Bloomberg.”
“The price hikes were concentrated in just a handful of industries, mostly those linked with raw materials needing petroleum and gas, as well as electronics.”
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“In contrast, traditional goods showed significant price drops. Rubber and plastic product prices fell 4%, while textile and apparel dropped 6% from last year. Car and related parts prices were also 6% lower.”