Guangdong, China's major toy manufacturing province, saw a slump in toy exports in October amid increasing costs, said the provincial customs Tuesday.

The toy export volume of Guangdong dropped by 13.3 percent to $670 million in October. The province's overall toy export volume in the first 10 months amounted to $4.6 billion, down 11 percent year-on-year, according to a statement from Guangdong's Huangpu customs.

The volume of Guangdong's toy exports to the US, European and Hong Kong markets in the first 10 months were respectively $1.93 billion, $1.14 billion and $410 million, dropping by 15.2 percent, 10.9 percent and 12 percent.

The cost of toy manufacturing has increased by 25 percent on average, while the price remained unchanged due to slack market demand and keen competition, said a customs official who declined to be named.

 

As both EU and the United States adopted more stringent standards on imported toys, Chinese manufactures have to spend much more on product inspection.

In addition, the cost of oil derivatives that are widely used in making toys, had jumped as the crude oil price rocketed from $35 per barrel early this year to $80 per barrel. Also on the rise are the costs of labor and transportation in China.

 

Source from: ChinaDaily