(Yicai Global) July 10 -- China’s exports of air conditioners are expected to rebound due to heat waves around the globe caused by El Niño, a cyclical climate pattern of the Pacific Ocean, according to industry insiders.
China’s planned output of household air conditioners for exporting rose almost 8 percent so far this month from a year ago and the figure jumped over 12 percent in June, Yicai Global learned from industry data provider ChinaIOL.Com today.
Before that, growth has been mild this year as from January to May, such exports inched up less than 0.05 percent to 36.8 million units from a year earlier. The value of shipments fell 2 percent to USD7.2 billion.
The phenomenon of warming ocean water called El Niño, which took place last time in 2016, has caused extreme weather in many places around the world, driving up the demand for A/C units to a certain extent, said Li Xuefei, analyst at ChinaIOL.Com. But still, growth this year has been meager, Li added.
Inventories in European and American markets are high and the demand is weak, Li said. Emerging markets, including Africa and Latin America, develop well, whereas Asia, the largest market for China’s household A/C unit exports, shows a relatively stable trend, the analyst added.
Although the recent declines in exchange rates and shipping costs are good for exporters, it is difficult to see a significant improvement in the export market in the short term under the unfavorable influence of global inflation and interest rate hikes in Europe and the United States, Li added.
Next years are expected to continue hot as due to El Niño, temperatures are forecast to further rise in most parts of the world in the future, with expected record highs within five years, according to a notice released by the World Meteorological Organization on July 4.
Editors: Dou Shicong, Emmi Laine