Economics
China's Factory to World Catches a Break
- The worst is over for rising raw materials prices: economist
- Wage spiral also has waned from double-digit pace in 2015
Employees make suits at a factory operated by the Shandong Ruyi Technology Group in Jining, China, on May 30, 2016.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Diaper maker Hangzhou Haoyue Industrial Co.’s profit margins got crushed late last year on surging paper and wood pulp prices. Even after its first price hike in years, the company was "just holding on," according to Damon Xia, who’s in the trading department.
Then this year, the economic pain started to subside. Pricing pressures for key supplies and labor eased, while the yuan steadied and demand for its baby and adult diapers picked up.