In the first five months, the export of refrigerators and freezers to the American market increased significantly
Under the influence of the epidemic in 2020, the overall home appliance industry chain is sluggish, but the performance of refrigerators and freezers has been remarkable, especially in the export market. From January to May this year, my country’s exports of refrigerators and freezers increased by 3.2% year-on-year. Among them, the export of refrigerators and freezers to the Americas increased by 28.7%, followed by Oceania, which also increased by more than 25%.
From the perspective of TOP10 countries exporting to the Americas, both the United States and Mexico have shown substantial growth year-on-year. Among them, the United States has more than 4 million units, accounting for about 67% of the total exports to the Americas; exports to Colombia have fallen the most year-on-year. There is a certain negative correlation between export volume and average export price.
For many years, the United States has been China’s largest exporter of refrigerators and freezers. In the first five months of this year, the export volume increased by 41.3% year-on-year. The global export share accounted for nearly 20%, which was an increase of nearly 6 percentage points from 14% in the same period last year. More than half of last year’s total.
The reason for the rapid growth is that, on the one hand, the fierce Sino-US trade war last year led to a relative decrease in the base; on the other hand, the American people have bought refrigerators and freezers for hoarding food, including replacing them with large-volume refrigerator-freezers or adding small-volume products to supplement storage. food. In addition, because of the global epidemic, the output of other producing countries has declined, and China’s epidemic has been controlled earlier and production capacity has recovered quickly, which has caused the United States to shift more imports from my country.
In terms of months, the number of refrigerators and freezers exported to the United States declined in February only, mainly due to the strict domestic epidemic prevention and control requirements, and the sharp decline in domestic production; the other months increased, and the April increase was close to 80%. On the one hand, domestic Enterprise production has basically recovered. On the other hand, the situation in the United States is severe. Although the economy was gradually restarted in the middle and late quarters, domestic production in the United States was still greatly affected throughout April.
According to Industry Online, although the domestic refrigerator and freezer market demand in the United States in May and June still performed well compared to other home appliances, the growth momentum has gradually slowed down.
Mexico is the largest production base of refrigerators and freezers in the Americas. In recent years, it has been one of the TOP4 Chinese refrigerators and freezers exported to American countries. Ranked third in the first five months of this year, the export volume increased by more than 45% year-on-year. The rapid growth in exports was mainly due to the following reasons:
One is that the base number in the same period of 2019 is relatively small. Even with the substantial growth this year, the export volume in the first five months was less than 250,000.
Second, the average export price dropped by nearly 30% year-on-year, which is also an important factor in the increase in export volume. On the one hand, the decline in the average export price is due to the global economic downturn, the decline in the prices of raw materials, and the increase in technology input and the transformation of production lines to produce high-quality and low-cost products. On the other hand, among the export products, the export volume of 200-500L refrigerator-freezers and ≤50L refrigerators both increased by more than 200% year-on-year, while the unit prices all decreased significantly. Among them, the average export price of 200-500L refrigerator-freezers decreased. Nearly 50%.
Thirdly, due to the severe COVID-19 pandemic, Mexico officially launched the “Safe Distance Day” for home isolation on March 23 and announced its end on May 30. During this period, the epidemic has not been effectively controlled. The resumption of work and production of local refrigerator and freezer companies is not very satisfactory, and the public’s demand for refrigerators and freezers due to the hoarding of vegetables and meat has increased. The decline in the average export price of refrigerators and freezers in my country has also promoted buyers’ willingness to buy, thereby driving export growth.
Colombia is the country with the largest decline among my country’s top 10 exporters of refrigerators and freezers. In the first five months of this year, exports fell by more than 45% year-on-year, and exports only accounted for about 55% of the same period last year.
Colombia is the third largest economy in South America. In the first quarter of 2020, Colombia’s economic growth was sluggish, with GDP increasing only 1.1% year-on-year, and a sharp drop of 2.4% from the previous quarter. Although the GDP rose slightly in the first quarter, it may fall into recession next. According to the United Nations Economic Commission for Latin America and the Caribbean, the economy of Latin America and the Caribbean will shrink by 5.3% in 2020, while Colombia is expected to shrink by 2.6%.
In addition, the home quarantine policies adopted due to the new crown epidemic and the drop in oil prices have had a huge impact on the labor market in Colombia. The unemployment rate has soared, from 12.6% in March to 21.4% in May. The unemployment rate in May last year was only It is 10.5%. In this case, the overall income of residents has fallen sharply.
The decline in the overall economy and the decrease in residents’ income have affected residents’ purchasing intentions and purchasing power, leading to a sharp decline in my country’s exports of refrigerators and freezers in the Colombian market.
Geson chiller product range covers Industrial Refrigeration and Commercial Central air-conditioning, including Water-cooled chillers, Air-cooled chillers, Screw chillers, Scroll chillers, Centrifugal chillers, Water(ground) source heat pumps, Air source heat pumps and etc., Capacity from 2tons~4000tons, and temperature from -160℃~30℃, complete full product series for customers.
Read more, pls visit www.linkedin.com/in/gesonchiller