Chinese exports suffer from scarcity and corona | Financial

The growth in profitability compared to a year earlier was more than 36% in May, where it had increased by 57% a month earlier, according to figures from the National Bureau of Statistics.

Higher prices for raw materials in China are driving higher profits for companies in the mining, oil and chemical industries, while end-product manufacturers face declining margins and production due to faltering supply chains.

Meanwhile, the country is also struggling with local revival of the corona virus, which partly paralyzed the important export port of Yantian, located near the industrial metropolis of Shenzhen, last week. This results in new delays in container transport by ship and ensures that container rates will remain high for even longer. This is also expected to be reflected in official data to be released this week on China’s manufacturing sector performance in June.

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