Garment companies fell 60% in Russian market orders

U.S. dollar breaks 60 marks against ruble Ruble-fallen decline in Chinese exports

The collapse of the Russian Ruble cliff-breaking style is still continuing. The previous day the ruble fell by 13% overnight. By the early morning of yesterday morning, the dollar had exceeded the 60 mark for the ruble for the first time. Yesterday's emergency rate hike by the Central Bank of Russia failed to curb the decline of its free fall. Subsequently, the price of oil continued to fall sharply. The first time in 5 years, the oil stocks broke through 60 US dollars, and the Russian stock market fell by more than 10% during the most intraday trading on Tuesday. The stock markets in the Middle East also fell sharply.

The impact of the plunging ruble on China has already emerged. Yesterday, *** against the ruble quoted 10.4308, up 10.56%. “1 US dollar can only be exchanged for 33 roubles in the first half of this year, but at the blink of an eye, it will be able to exchange 66 roubles. The Russian buyer has proposed delaying delivery to us.” said a person in charge of the Russian market for a large household appliance company, “Customers cannot give In the delivery period of the goods, payment is also required to be postponed. On Saturday, our factory met in an emergency and reduced its stock volume in case of an emergency."

Industry experts pointed out that judging from the current situation, the impact of the sanctions imposed by Europe and the United States and the continuous plunge of oil on Russia and even on the global economy have gradually emerged. “The Russian economy is currently plunged into the face of all directions and is merely raising interest rates or making it difficult to save the ruble. ”

“In the past, there were a lot of garment enterprises in Xintang that were specifically exporting to Russia, but only one or two of them really did well in the market this year.” Zhan Xuezheng, President of Xintang Chamber of Commerce of Xintang Chamber of Commerce and Industry, Xintang Branch, told reporters "The drop in the ruble has led to an increase in the cost of Russian purchases. The increase in the unit price of apparel in the country will inevitably affect local sales, and many orders in the Russian market have fallen."

Increased risk of default on exports to Russia

There is clothing business owner said that the overall Russian orders fell by 60%, "Some clothing companies are slowly rampant, and some clothing companies because foreign trade business difficult to do has been directly closed down."

In 2013, a Hong Kong-owned jewellery company in Guangzhou had sales of US$126 million in Russia, but its responsible person told reporters that “This year's business in Russia dropped by 45%. In response to the crisis, we will all make receivables on the one hand. The insurance arrangement will pay close attention to the return of funds from local Russian companies, while controlling the pace of shipments and designing more affordable silver jewelry to accommodate changes."

Relevant person in charge of a textile export company told the reporter that since 2012, it has had foreign trade with Russia, and the annual transaction amount has been more than 5 million US dollars. Before that, buyers have never been in arrears. “In January of this year, we exported nearly 980,000 US dollars of goods to Russian customers. We originally agreed to pay for 90 days, but by the payment period in April, customers had not paid for it yet. Russian buyers told us that because banks tightened credit, The expired ** could not be transferred, resulting in a huge gap in funds, and due to the sharp devaluation of the ruble against the US dollar, which caused its first quarter losses, coupled with the impact of the crisis, its sales in the Ukrainian and Polish markets are difficult, so It is difficult to pay the money and will apply for bankruptcy.” The above-mentioned person in charge reluctantly stated that once the buyer has filed for bankruptcy, the company may face significant risks of not receiving the money.

A person in charge of Guangdong Xinbao told reporters that due to the delay in payment by the Russian buyer’s company, several insured persons had reported losses to China Xinbao, and the cumulative loss amounted to several million US dollars.