China continues to be the world’s biggest supplier of writing instruments, with exports increasing at more at than 25 percent annually. Overseas revenue is expected to exceed US$1.2 billion in 2007. Now with the help of this report, you too can profit from the latest models available from China. You’ll get in-depth profiles of 17 major suppliers with a comprehensive look at their product and pricing strategy, manufacturing and export capability, verified contact details, and more. This report covers the major types of writing instruments produced and exported from China: ballpoint and gel pens; mechanical and nonmechanical pencils; and felttipped highlighters and markers

Executive Summary:

China’s exports of writing instruments have continued to post steady year-on-year growth in recent years. In fact, overseas revenue for 2007 is projected to exceed US$1.2 billion.

Despite spiraling material costs, reduced export tax rebates and stricter overseas standards, the country still holds its position as the world’s chief producer of pens and pencils.

In the first seven months of 2007, overseas shipments topped 9 billion units — up by 8.5 percent from the previous corresponding period. In value terms, exports climbed by 26 percent to reach US$675 million. The top three markets are the US, the UK and Germany, which collectively absorbed 4 billion units or roughly 30 percent of China’s total exports.

In anticipation of increased demand, most suppliers will be expanding or upgrading their factories in the next 12 months. Others will improve their QC systems to lower defect rates.

The following are some of the key trends we see in China’s writing instruments export industry:
•  Export prices are expected to increase through 2008, due mainly to rising brass, copper and plastic costs, the continuing appreciation of the yuan against the US dollar, and the July 2007 tax rebate cuts on China-made ballpoint, fountain and drawing pens, felt-tipped markers, pencils, as well as pencil leads and ink refills.
•  Most makers will continue to use imported ink and tips, mainly from Germany, Switzerland, Japan and South Korea, for their midrange and high-end designs. The country’s research in the area of ink formulation is not yet highly specialized.
•  Upcoming models will feature more innovative and ergonomic barrel shapes. Brightly colored promotional pens, novelty-shaped highlighters and models with flashing LEDs or retractable paper rolls will continue to gain popularity. Alternative pen barrel materials such as molded paper and transparent PC are also receiving increased attention.
•  Further, some makers are directing R&D efforts toward environment-friendly designs such as large-capacity highlighters and markers with reusable ink containers, and pens featuring recycled newspaper barrels.

This updated report focuses on ballpoint and gel pens, mechanical and non-mechanical pencils, and felt-tipped highlighters and markers. These product types constitute the bulk of China’s exports in the line. Factors that determine price and differentiate the features of low-end, midrange and high-end designs are discussed in the Products & Prices section of this report.

The Supplier Survey highlights the outlook on prices, capacity expansion plans, sales performance and product development trends for 2008.

The Industry Overview section underscores the key issues makers are facing, and their means of dealing with these problems. It also provides information on the export capability of small, midsize and large companies. The major production hubs, mainly Zhejiang province and Shanghai, are also discussed.

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