December 2011
We at Anglo China Sourcing Ltd think it is sensible to take a balanced view of the real situation in the bristle market. For as long as there has been a market in dressed bristle we have seen cycles where one type of bristle, be it short black bristle, or middle size white bristle, or long grey bristle, has been scarce and the supply was unable to meet demand. As in all markets manufacturers and consumers adapt and the market finds the correct level and or an alternative.
Some of our competitors are telling customers that black bristle is no longer available which is simply not the case, good quality black bristle is available, but demand is such that it has become very expensive and only those producing the very best quality professional brushes can afford to fill their brushes with top quality pure bristle. There is a plentiful supply of white bristle where prices in RMB has been quite stable for a period of time, obviously the hugely volatile exchange rates of the last year have meant that prices have risen in certain currencies, this however is more the function of a weak currency than an underlying increase in the raw material price.
There have been huge developments in the quality of synthetic filaments available and being produced in the Far East , the price and quality of these filaments has seen considerable changes in brush production, for both paint and household brushes. Depending on the market segment in which these brushes are being sold there has certainly been a move to the use of more synthetic filament and bristle synthetic filament mixtures in the production of brushes.
There is still no general agreement in either the paint industry or the brush manufacturing industry as to which type of filament or mixture performs best in the various types of paint available . For this reason we have developed a number of different mixtures as we absolutely do not believe at this point in time there is a one fits all solution.
We at Anglo China Sourcing Ltd would be very happy to discuss with you the various options open with regard to brush filling material.
As important as our business in sourcing the right types of brush filling material we are also a total supply chain solution for all types of decorating products manufactured in China. We have our own offices and employees in China who source, inspect and consolidate your requirements in three warehouse we have spread through China.
We look forward to seeing you at Interbrush in 2012.
Anglo China Sourcing your total Supply Chain Solution.
Tim Kleingeld
March 2011
Since last writing a market report in December the market has become even more difficult for a myriad of reasons, some were expected and others could not been foreseen.
The fact that much of the Middle East is in varying stages of trying to bring about regime change, the consequent great political uncertainty, and the resulting steep rise in the price of oil has only served to add “fuel to the fire” if you will excuse the pun. The natural disasters in Japan and New Zealand, that no one could have predicted, will also have huge effects on the world economy.
China’s economy, vital in avoiding a worldwide recession, still seems to be powering on which has significant implications on the bristle market.
The RMB continues to strengthen against the US$ which is no great surprise, however the rate at which costs are rising in China, largely brought about by the strength of the economy, are certainly steeper than many had expected.
Bristle dressing factories are finding it very difficult to keep and/or recruit workers-the amount of building taking place remains staggering in China-this is not just confined to the coastal regions but is also booming in land. The majority of bristle dressing factories are located in fairly rural regions in China, precisely the places that are now seen as more attractive places for companies to build new factories, to enjoy relatively “cheap” labor compared to the more industrialized areas such as Shanghai/Guangzhou/Jiangsu/Beijing etc.
This is in fact a double whammy-a massively increased demand in the building sector, for unskilled labor, and the new jobs being created by companies moving into the rural areas where traditionally the dressing factories had almost a monopoly on employment.
New raw material is becoming available after the Spring Festival but there is no sign of prices stabilizing yet. The fact that there is still very healthy demand from domestic brush manufacturers in China serves to under pin the market and the fact that there is not too much bristle in stock in China or little if any which is unsold in Europe leads me to believe that prices are unlikely to fall any time soon.
I would therefore recommend that manufacturers continue to hold healthy stocks and plan well forward – for those of you manufacturing in Europe you at least have the benefit of a significantly stronger Euro which has taken some of the pain out of recent price increases, but with the structural deficits in countries such as Portugal, which are very much in the public eye at the moment, it is anybody’s guess how long this will last.
Tim Kleingeld
December 2010
We are inundated with various market reports and predictions in the media, from our bank’s foreign exchange department and Chinese suppliers. As we are coming to the end of the year we would like to share this with you in order that we can make better sense of the current market situation and better predict what is likely to happen next year.
Inflation in China stood at 4.4% in Nov.,2010, and the government has indicated it will certainly be higher in December 2010. Wage inflation alone in 2010 stood at 13%. There is considerable pressure from the USA who believes that RMB should appreciate by between by 20 – 40% to reach a true and fair value against the US$. As a result there have been huge capital inflows into China in anticipation of RMB appreciation. This has fuelled rises in commodity prices (iron and steel rose by 20% in last two weeks) as well as continuing to create a property boom.
Synthetic filament costs have also increased, the world wide cotton shortage which has seen a price increase of approx.70%, and as a result many garment manufacturers move to producing garments using different fabrics such as polyester or acrylic, not surprisingly these prices have in turn also increased sharply over the last month by approx 20%.
The manufacture of brushes currently uses a lot of synthetic filament, such as SRT & hollow PET filament which are made from polyester & PBT, these filaments have also increased 10-20% since the middle of November, resulting in many factories trying to increase prices.
The price of oil has also increased, the result has inevitably seen oil based products such as PP, ABS, PET. increase, the cost of plastic handle have risen by between 15%-25%;
The RMB has appreciated this year by approximately 4% and it is widely anticipated that it will rise by a further 5% in 2011.
For these reasons it is likely that one should count with price increases for goods being manufactured in China in 2011. The Chinese fully understand the importance of exports to their economy and I believe they will make every effort to keep prices rises to a minimum.
Tim Kleingeld
October 2010
The bristle market is firm and there is little likelihood that this will change anytime soon. There are no stock piles of bristle in China and demand is relatively firm in both the International and domestic market( in China). Black bristle is scarcer than white and the most demanded sizes 57/64/70mm continue to increase in price on an almost daily basis.
The bristle dressing factories are faced by the continuing increase in the price of raw materials as well as increasing costs of labour and utilities.
These costs are all calculated in RMB and I think it is impossible to escape the fact the G20 are putting great pressure on China to allow the RMB to appreciate, which it has done by approx 3% in the last few months. This has added in US$ terms to the price inflation, which I expect will certainly continue-the pace of which is hard to estimate, but it is obviously absolutely not in China’s best interest that this happens to quickly.
In my last report I said that times were particularly difficult for those living in Euroland as the currency was so weak, this has however changed dramatically with the Euro strengthening enormously against the US$ in the last few months. The Euro appreciation against the US$ will go a long way to mitigating the prices rises in China-so I guess today is a good time to be in Euroland.
Under these market conditions I would recommend to keep a healthy level of inventory.
Tim Kleingeld
May 2010
Prices continue to rise largely because the “unboiled factories/semi dressers” continue to hold on to their stocks and are drip feeding this into the market in anticipation of ever increasing prices. There is continued speculation as to how much the RMB will revalue against the US$ this year which is generally expected to be by at least 5%. For those unfortunate enough to have the Euro as their currency, the situation is even more difficult with the currency seemingly in free fall with the markets not convinced that the Greek debt situation is under control , also with the looming concern that Spain/Portugal/Ireland may find themselves in an equally difficult situation. There are only relatively small amounts of dressed bristle lying in warehouse at the moment in China and therefore it is reasonable that prices will continue to increase in the short term and realistically it is unlikely that the market will stabilise before the end of the summer at the earliest. There is also very little stock available outside of China and we would therefore recommend that you keep a close eye on your stock levels and reorder in a timely fashion.
Tim Kleingeld
August 2009
The International Bristle Market has possibly seen more changes over the last 12 months than in the last 12 years.
Increased competition from China direct and the constant price pressure being applied by the retail sector to brush manufacturers has brought about the demise of the old traditional Bristle Merchants, who historically held large stocks, but are unable in today‘s market conditions to finance these stocks and cover their overheads. A number of the larger merchants have either ceased trading in bristle, or drastically scaled back their operations, to such an extent that they are no long the dominant force in the market. As a result companies like Anglo China Sourcing Ltd are filling this void, with decades of experience in trading bristle in China, a new business model and subsequent lower cost base, they are able to sell at China direct prices but with the added security that their own employees in China will take the hassle and strain out of finding the right factory to produce the required quality and inspect goods prior to being shipped to their onward destination.
Bristle prices in China have certainly become firmer over the last 6 months, particularly so for shorter sizes, as demand has picked up in the domestic market. Last year the strengthening RMB was an important factor but over the last six months or so there has been little movement between the RMB/US$. The increasing prices are a result of a combination of factors, the continuing transfer of the production of brushes to China from high labour cost countries and in part to a reduced availability of raw materials. During the last collecting season bristle dressing factories were very cautious in purchasing raw materials as it was absolutely unclear how long the world economic down turn would last. Many factories had reasonable stocks of longer sizes and were worried that the market would turn. As a result less raw material was purchased and the last 6 months have seen these stocks slowly being depleted The Chinese suppliers were even prepared to sell longer sizes alone without significantly recalculating the assortment and this clearly indicates how relatively weak the market had become, with supply exceeding demand.
The price of natural bristle had become so high many manufacturers, in order to bring down manufactured costs, had been turning to either pure synthetics or synthetic bristle mixtures, and it is unlikely they will ever return to using just natural bristle unless prices fall dramatically, as the difference in price between 76mm and up bristle is 200-300% higher than that of acceptable synthetic material.
The surplus stocks of 76mm up has reduced significantly and it is unlikely that prices will fall before the next collection season around the Spring Festival.
To make price predictions any further forward than the forth coming Spring Festival is extremely difficult at the best of times. The supply of material should improve after the Spring Festival, but with the uncertainty as to when the global economy will start to pick up, and therefore affect the demand side, it is obviously extremely difficult to know where the market will be in 6 months time. I suspect that most manufacturers have reduced their raw material inventory as much as they possibly can, and therefore if anything demand is only likely to increase as and when we come out of the down turn, and as such I believe prices are more likely to remain firm than fall.
Tim Kleingeld
April 2009
Anglo China Sourcing Ltd has been appointed, with immediate effect, to organise the delivery of all Delbanco Meyer and Co. Ltd's bristle sales contracts and to sell the remainder of their bristle stock. Anglo China Sourcing Ltd is highly regarded within the industry and offer a first class service, combining best quality, highly competitive pricing and the security that our team have over 50 years experience in this business. Anglo China Sourcing Ltd have its own dedicated staff and offices strategically located in China.
We very much look forward to hearing from you with any inquiries you may have for either brush raw materials or finished products that we can source for you in China from our many dedicated sources of supply.
Tim Kleingeld
February 2008
I am very excited to announce that Anglo China Sourcing Ltd have extended their exclusive sales and agency agreement with Shangcheng Bristle and Brush Factory of Henan Province for 2008 for the sale of their paintbrush production.
Shangcheng Bristle and Brush Factory was established in 1950 and are probably the largest bristle dressing factory, and amongst the most important manufacturers of paint brushes, in China.
In 2007 Shangcheng experienced economic reform and has now entered into a very exciting period in its history under the ownership of Mr. Yang Kongming, who has been General Manager for many years prior to this reform.
I have worked together with Yang Kongming for almost 20 years and I am sure that he is the right person, with unparalled knowledge and understanding of the business, to take the business on to an even higher level.
Tim Kleingeld
February 2008
We are very excited to announce that Anglo China Sourcing Ltd (ACS) has been appointed the exclusive Sales Agent and Distributor for Shanghai Xiaobang Household Products Ltd (Xiaobang) in Europe and Africa.
Xiaobang are market leaders in China in the production of various qualities of polyester filament for brush manufacturers, as well as accomplished paintbrush manufacturers.
Xiaobang was founded in 2001 by David Lu, who is probably the foremost expert in filament extrusion in China. They have a large factory conveniently located close to Shanghai and currently have a production capacity for filament of 200,000kgs per month and for brush of 1,400,000pcs per month. Xiaobang are committed to innovation and product development, which is carried out in their purpose built laboratory in Shanghai.
The co-operation between ACS and Xiaobang brings together many years of expertise in supplying the brush manufacturing industry with brush making filaments. Tim Kleingeld and Marita Keremezo have a combined experience of over 35 years in sourcing natural hog hair for brush manufacturers worldwide, and we believe that this, allied to the expertise of David and Tracy Lu in the production of synthetic filament, makes an unbeatable team.
We are able to offer both pure synthetic filament and blends of synthetic filament and hog hair.
We will be participating at the Interbrush Trade Fair in Freiburg and look forward to seeing you at our stand Hall 4, Stand No 4.4.6 on 16th to 18th of April 2008.
For further information please contact
Tim Kleingeld