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INDUSTRIAL SECTION REPORT FOR SEPTEMBER.
23
JC
The possibility of interruption in the supply of raw
materials due to the outbreak of hostilities in Europe resulted in
rapid rise in the prices of many commodities in use in Shanghai
factories during the month, and introduced new difficulties into a
situation already suffering from adverse exchange. Speculation in
'
certain raw materials caused prices to move erratically and rendered
genuine factory purchases difficult. Many who do not customarily
deal in commodities invested in them since currency had lost its
attractiveness. The high price of fuel contributed further to the
embarrassment of some entreprises. Nevertheless there has not as
yet descended any widespread unemployment, though there is some
slackening. The larger textile mills which obtain some supplies
from nearby provinces are active; others have stocks of raw materials
for the present. One group of mills only reduced the number of its
shifts to half. The view was expressed by some textile interests
that the slight improvement registered in the sterling value of the
dollar represented the margin between unprofitable and profitable
management. The dyeing industry suffered sharp increases in prices
of dyestuffs. One enterprise has begun to plan the local manufacture
of a constituent in the dyeing industry now no longer able to be
imported from Europe. Rubber shoe factories are greatly affected by
recent events. There is restriction in the export of rubber from
Malaya which has further advanced in price by another 30 per cent.
Possibly only one-fifth of the rubber shoe factories are working,
and these on a part time basis at a time which is usually considered
the rush season for manufacture. Enamel ware factories, despite a
100 per cent. rise in the cost of raw materials since June, continue
to find an overseas market for their products. Felt hat factories
are busy, with stocks of hoods to last three months; thermos bottle
enterprises are slack. Currency restrictions in British colonies
act against the export of seasoning powder and some other commodities.
In many industries selling prices of finished goods are still lower
than replacement costs of raw materials. of seventeen registered
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