International Freight Shipping | 1.29 million pieces exported in one month! Europe snaps up Chinese-made heating devices

2022-09-29 16:58
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International Freight Shipping | 1.29 million pieces exported in one month! Europe snaps up Chinese-made heating devices

International freight shipping news: With years of experience in freight forwarding, Unitex provides fast and reliable air freight and sea freight service for customers worldwide. Recently, a Chinese device has become popular abroad. The topic of "Europeans buying up Chinese electric blankets" was once a hot search on Weibo.
 
According to Red Star News, winter is coming to the northern hemisphere. At the same time, due to the energy crisis, the price of natural gas and electricity in European countries continues to rise. In order to save costs during the winter, European people have already started to prepare heat pumps, electric blankets and other warming devices.
 
In this context, the export of heating equipment such as electric heaters, electric blankets and air source heat pumps from China has seen an explosive growth this year.
 
1.29 million pieces exported in one month
 
Data from the General Administration of Customs of China shows that in July this year alone, the EU27 imported a whopping 1.29 million electric blankets from China, an increase of nearly 150% from a year earlier. The sales season for heaters exported to the EU has also been extended by about a month. Many importers placed additional orders for heaters, bringing about a wave of "replacement orders".
 
Given that European consumers are increasing their purchases of heating equipment ahead of the upcoming winter season, China's exports of electric blankets were US$33.4 million from January to July, leading other home appliance categories with a 97% year-on-year growth rate, while exports of electric heaters were up 23% year-on-year.
 
Data from the China National Electrical Appliances Association (CNEA) shows that, in terms of specific countries, compared to the hot sales of electric heaters and air source heat pumps in some countries, the import demand for electric blankets in various countries has increased at the same time, with Greece, Italy, Poland, Germany and the Netherlands all doubling in size.
 
According to China Daily, many electric blanket factories in China are producing at full capacity. Liu Hu, manager of an electric blanket factory in Dongguan, said that sales of electric blankets this year are now three times higher than the same period last year, and the best record in the past five years.
 
"Export orders have grown two times more than last year, and orders came in more in July." On September 24, the highest temperature in Dongguan was 34°C, but Liu Hu was staring at the production of winter supplies of electric blankets in the factory.
 
According to Liu Hu, as early as May, the factory did a market assessment, the conclusion is that the electric blanket market will explode, there are two main reasons, one is the geopolitical conflict under the price of natural gas, the second is this summer's extremely high temperatures, after the summer must have a big cold. June began, the factory equipment on 24-hour operation, three shifts, but also specifically for this expansion. The factory's electric blankets are mainly sold to Europe and North America, with sales of around 100,000 a month now.
 
"Europe has long winters and some countries get very cold by April, especially the areas by the north, and our factory's customers in these countries are stocking electric blankets in large quantities." Liu Hu said workers are currently producing orders for October and November.
 
He predicts that sales of electric blankets in Europe and the US will peak on Black Friday (25 November).
 
Firewood has become a scarce commodity in Europe
 
According to a recent report in the Washington Post cited by CCTV News, firewood, a traditional heating fuel, has become a scarce commodity in many parts of Europe as demand for it has soared due to the deep energy dilemma in many European countries. The report said some European buyers began stockpiling firewood for winter heating as early as summer, causing firewood prices to soar in many parts of Europe.
 
In some areas of Hungary, the price of firewood has almost doubled. And in Stuttgart, Germany, there has been an increase in wood theft and pilferage. In Berlin, many families have also started cleaning out their fireplaces and chimneys in preparation for burning firewood for cooking this winter, due to fears of a cessation of heating and a further rise in energy costs.
 
Experts say that although some European countries have sufficient wood reserves in their forests, trees must be dried for a long time after they have been cut down to make firewood, so it is not possible to supply large quantities of firewood immediately.
 
Experts say that the root cause of the energy crisis in the EU is that people in Europe are being forced to "travel" back to the days of burning firewood to heat their homes.
 
LNG may be in short supply in winter
 
For Europe, the current progress in gas storage is good news. According to European storage operators, German storage facilities were at 90.07% stock last Sunday, compared to an EU average of 85.99%.
 
The problem, however, is that gas demand will only really peak in winter, when Europe will have to implement energy rationing and its economy will take a huge hit if supply problems further intensify.
 
European countries therefore want to speed up the search for alternative sources of Russian energy. As one solution, Germany wants to be able to buy more LNG from Qatar as soon as possible, with the aim of replacing all energy imports from Russia by mid-2024 at the earliest. It should be noted, however, that while a supply agreement with Qatar would be beneficial to Germany, it would not actually solve the country's looming energy crisis, as the expansion of Qatar's northern oil fields is not expected to come on stream until 2026.
 
Furthermore, last month, German Chancellor Scholz and Deputy Chancellor Habeck travelled together to Canada in the hope of reaching bilateral cooperation in the field of energy and raw materials. However, Scholz returned from his trip to Canada with regrets as the construction and regulation of pipelines to transport natural gas are issues that are difficult to resolve in the short term.
 
The US role is also limited by supply chain and capital discipline constraints, and US shale oil and gas executives have warned that they will not be able to increase oil and gas supplies to "save" Europe this winter. Our production model is such that we can't add more production," said Wil VanLoh, head of private equity Quantum Energy Partners, one of the largest investors in shale oil and gas fields. There will be no emergency assistance, whether it's oil, or gas."
 
Asked if the US shale gas industry might increase production significantly, Scott Sheffield, chief executive of US energy giant Pioneer Natural Resources, also said, "No, I don't think that's going to happen. We haven't increased our rig count and I don't see other companies increasing it. With tight supply, crude oil prices could rise above $120 a barrel this winter."
 
To make matters worse, Europe may also have to compete with Asia for gas supplies the following winter. There is now widespread concern in the market that, with Russian supply disruptions this year, gas market supplies will struggle to meet everyone's needs when demand peaks in the northern hemisphere during the winter.
 
On 20 September, the Japan Meteorological Agency forecast that Japan could be particularly cold this winter due to the La Niña phenomenon. From December this year to February next year, temperatures in eastern and western Japan are likely to be below normal; at the same time, winter snowfall is likely to be higher than normal in eastern and western Japan on the Sea of Japan side. This means that the Japanese population is likely to have higher than usual demand for heating fuel and electricity this winter.
 
Due to its poor energy resources, Japan is the world's second largest importer of LNG, accounting for nearly a fifth of global LNG imports, second only to China. If the cold weather this winter drives up Japanese LNG imports, it will further tighten the global LNG and coal markets.
 
With limited alternative sources, gas conservation is a necessity. Qin Yan, chief power and carbon analyst at Lufte and researcher at the Oxford Institute for Energy Studies, said in an interview with the 21st Century Business Herald that it would be difficult for alternative gas sources to fully make up the shortfall in the short term due to reduced gas supply from Russia, so only consumer-side measures could be taken to achieve a safe winter. To be precise, Europe is not yet in an energy shortage, only an energy crisis, and the measures being discussed are designed to avoid or mitigate the impact of winter energy shortages.
 
From 21 Financial News
 
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