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A lot of opportunities can be seized by being aware of what happens with the current fluctuations of the major currencies.
Once again we have updated the most important rates of exchange relating to our exports in Euro from ITALY.
1. Country/ies: USA, Middle East, Egypt, Kenya and all Countries linked to the US$
Exporting from Italy to them
| 1.1 |
€/US$ |
|
| |
on 20.07.08
on 7.10.08
on 27.10.08
on 18.02.09
on 15.12.09
on 07.05.10
on 07.06.10 |
it was 1,5708
it was 1,3508
it was 1,2446
it was 1,2596
it was 1,4541
it was 1,2722
it was 1,1910 |
Fema selling prices and their perception in those countries have had ups and downs but the present situation comparing with the one on 20th July 2008 is that our exports will cost less by 24,18%.
Time to buy!
Importing from China into the same Countries:
Imports from China. Imports of similar products manufactured in China and sold usually in US$ will cost 31,90% more. This means that, forgetting other factors in favour of our products (such as specs, quality, warranty, etc.) and looking only at prices, the Chinese product will cost slightly more than before.
Worth comparing prices again!
When you think about it you will find that from July 2008 up to now the price gap between our Italian made units and Chinese ones has been reduced by 56,08% (24,18% + 31,90%): unbelievable!
This, beside all the advantages re our products (guarantee, high quality, higher duty cycle, ecc.)
2. Country/ies = Euro Countries
2.1 Exporting from Italy to them:
Present fluctuations of rates of exchange do not affect our price position since invoicing in €.
2.2 Importing from China into the same Countries:
Imports from China. Imports of similar products manufactured in China and sold usually in US$ will cost to the European importer 31,90% more. This means that, forgetting other factors in favour of our products (such as specs, quality, warranty, etc.) and looking only at prices, the Chinese product will cost slightly more than before.
Worth comparing prices again!
3 . Country/ies: Australia
3.1 Exporting from Italy:
| 1.1 |
€/A$ |
|
| |
on 20.07.08
on 7.10.08
on 27.10.08
on 18.02.09
on 15.12.09
on 07.05.10
on 07.06.10 |
it was 1,6286
it was 1,8921
it was 2,0494
it was 1,9726
it was 1,6048
it was 1,4250
it was 1,43639 |
This means that exports to Australia will cost to the importers 27,18% less comparing on prices to those on 18th February 2009.
3.2 Importing from China into the same Country:
| 1.1 |
US$/AU$ |
|
| |
on 20.07.08
on 7.10.08
on 27.10.08
on 18.02.09
on 15.12.09
on 07.05.10
on 07.06.10
|
it was 1,0377
it was 1,3858
it was 1,6466
it was 1,5660
it was 1,1036
it was 1,1026
it was 1,22142 |
Regarding the imports from China into Australia, there has been a significant price decrease due to the revaluation of A.$: this if we compare prices during the last period. However if we compare import prices in US$ against those in July 2008 we note a price increase by about 17,70%.
This means that the price variance between Fema and Chinese prices has improved by about 44,88% (27,18+17,70%).
4. Country/ies: United Kingdom
4.1 Exporting from Italy:
| 1.1 |
€/£ |
|
| |
on 20.07.08
on 7.10.08
on 27.10.08
on 18.02.09
on 15.12.09
on 07.05.10
on 07.06.10
|
it was 0,7900
it was 0,7772
it was 0,8044
it was 0,8846
it was 0,8960
it was 0,8530
it was 0,8256 |
Just in few months (from 15 December 2009 to 07th May 2010), imports into U.K. will cost less by an amount corresponding to 7,90%.
4.2 Importing from China into the same Country:
| 1.1 |
€/£ |
|
| |
on 20.07.08
on 7.10.08
on 27.10.08
on 18.02.09
on 15.12.09
on 07.05.10
on 07.06.10
|
it was 2,0000
it was 1,7380
it was 1,5472
it was 1,4240
it was 1,6229
it was 1,5114
It was 1,45028 |
In relation to 20.07.08 imports from China will cost 37,90% more. This means that the variance between similar Chinese and Italian products is now about 45,80% (the Italian products have become more competitive).
5. Country/ies: New Zealand
5.1 Exporting from Italy:
Just in about one year (from 18 February 2009 to 7th May 2010), imports into New Zealand will cost less by an amount corresponding to 27,43%.
5.2 Importing from China into the same Country
| US$/ NZ$ |
|
on 20.07.08
on 7.10.08
on 27.10.08
on 18.02.09
on 15.12.09
on 07.05.10
on 07.06.10
|
it was 1,3300
it was 1,5700
it was 1,7000
it was 1,9600
it was 1,3880
it was 1,3938
it was 1,4982 |
During the same period (from May 2010) Chinese imports will cost 7,50% more. The price gap has improved for the Italian products by 34,93%.
A few notes on practical repercussion of fluctuation on rates of exchange:
Some importers are too busy to appreciate how changes in rates of exchange can affect their business.
Sometimes they go on with preconceived ideas such as “products invoiced in Euro cost too much” or “I prefer to buy Chinese products because products are expressed in US Dollars”, etc.
We find that through the years the price gap between Italian and Chinese prices has diminished, mainly because of the US $ variations and the increase of Chinese labour costs.
However, we have not to forget the biggest advantage the Italian and Fema products offer because of: a) "made in Italy" high quality; b) warranty; c) timing on delivers; d) flexibility on quantities.
1.2 At the same time imports from China into the same Countries will cost
8% more.
2. Selling to Euro Countries in Europe.
2.1 Exports. Present fluctuations of rates of exchange do not affect our price position since invoicing in €.
2.2 Imports from China. Imports of similar products manufactured in China and
sold usually in US$ will cost to the European importer 8% more. This
means that, forgetting other factors in favour of our products (such as
specs, quality, warranty, etc.) and looking only at prices, the chinese product will cost slightly more than before.
Worth comparing prices again!
3. Australia
| 3.1 |
€/A$ |
|
| |
on 20.07.08
on 07.10.08
on 27.10.08
on 18.02.09
on 15.12.09 |
it was 1,6286
it was 1,8921
it was 2,0494
it was 1,9726
it was 1,6048 |
This means that exports to Australia will cost to the importers 18.6%
less comparing on prices to those on 18th February of this year.
| 3.2 |
US$/AU$ |
|
| |
on 20.07.08
on 07.10.08
on 27.10.08
on 18.02.09
on 15.12.09 |
it was 1,0377
it was 1,3858
it was 1,6466
it was 1,5660
it was 1,1036 |
Regarding the imports from China into Australia, there has been a significant price decrease of the revaluation of A.$: this if we compare prices during the last period. However if we compare import prices in US$ against those in July 2008 we note an increase by about 6%.
This means that the price variance between Fema and Chinese prices has improved by about 25% (18.6+6%).
4. United Kingdom
| 4.1 |
€/£ |
|
| |
on 20.07.08
on 07.10.08
on 27.10.08
on 18.02.09
on 15.12.09 |
it was 0,7900
it was 0,7772
it was 0,8044
it was 0,8846
it was 0,8960 |
Exports to the U.K. will cost there about 13% more.
| 4.2 |
£/US$ |
|
| |
on 20.07.08
on 07.10.08
on 27.10.08
on 18.02.09
on 15.12.09 |
it was 2,0000
it was 1,7380
it was 1,5472
it was 1,4240
it was 1,6229 |
Imports from China will cost 23,45% more. This means that the variance between similar Chinese and Italian products is now about 10% (the Italian products have become more competitive).
5. New Zealand
| 5.1 |
€/NZ$ |
|
| |
on 20.07.08
on 07.10.08
on 27.10.08
on 18.02.09
on 15.12.09 |
it was 2,0900
it was 2,1564
it was 2,3006
it was 2,4691
it was 2,0183 |
No significant variation on prices regarding exports to N.Z..
| 5.2 |
US$/ NZ$ |
|
| |
on 20.07.08
on 07.10.08
on 27.10.08
on 18.02.09
on 15.12.09 |
it was 1,3300
it was 1,5700
it was 1,7000
it was 1,9600
it was 1,3880 |
Imports from China will cost about 4% more.
A few notes on practical repercussion of fluctuation on rates of exchange
Some importers are too busy to appreciate how changes in rates of exchange can affect their business.
Sometimes they go on with preconceived ideas such as “products invoiced in Euro cost too much” or “I prefer to buy Chinese products because products are expressed in US Dollars”, etc.
We find that through the years the price gap between Italian and Chinese prices has diminished, mainly because of the US $ variations and the increase of Chinese labour costs.
However, we have not to forget the biggest advantage the Italian and Fema products offer because of: a) "made in Italy" high quality; b) warranty; c) timing on delivers; d) flexibility on quantities. |
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