ATTN: MR. SUPOL NANANON DATED: MARCH 9TH, 2011
FROM: JOINT VENTURE WENZHOU TOSUN ELECTRIC CO. LTD. CHINA
DEAR MR. SUPOL,
THANKS FOR YOUR KIND E-MAIL OF MARCH 7TH 2011.
WE ARE VERY PLEASED TO HAVE RECEIVED NEW INQUIRY FROM YOU AGAIN. BUT THE PRICES SHOULD BE ADJUSTED ACCORDING TO THE LATEST SITUATION THIS TIME. THERE ARE THREE MAIN REASONS:
1. THE COST OF RAW MATERIAL IN THE WORLD MARKET HAS BEEN INCREASED HEAVILY IN THE PAST 12 MONTHS. FOR EXAMPLE, THE PRICE OF COPPER IS INCREASED TO MORE THAN USD9,500.00/TON FROM USD6,500.00/TON AGAINST WHICH WE OFFERED THE PRICES FOR YOUR ORDERS LAST YEAR. THE COST OF OTHER RAW MATERIAL IS ALSO INCREASED A LOT EXCEPT ALUMINIUM AND ZINC.
2. THE SALARY OF WORKERS IS INCREASED FURTHER AS THE INFLATION RATE IN CHINA IS INCREASED VERY MUCH IN YEAR 2010! THE SITUATION IN CHINA IS VERY DIFFICULT AND COMPLICATED NOW. OUR GOVERNMENT DOES VERY BAD IN THESE THREE YEARS. THE ONLY THING THEY DO WELL THESE YEARS IS TO SELL LAND AND HOUSE AT VERY HIGH PRICES! BUT IN FACT, THE LIVING LEVEL OF MOST OF PEOPLE IS DECREASED A LOT IN THESE THREE YEARS EVEN THE SALARY IS INCREASED TO SOME EXTENT!
3. THE EXCHANGE RATE BETWEEN CHINESE CURRENCY AND USD IS INCREASED TO 6.55:1.
ANYWAY, HAVING CHECKED EVERYTHING CAREFULLY, WE WORKED OUT OUR LATEST MOST FAVORABLE FOB NINGBO PRICES AS ATTACHED FILE. PLS CHECK CAREFULLY AND GIVE US YOUR POSITIVE COMMENT ASAP SO THAT WE ARE ABLE TO PROCEED FURTHER.
THANKS FOR YOUR KIND UNDERSTANDING AND COOPERATION ALL THE TIME.
LOOK FORWARD TO RECEIVING FAVORABLE REPLY FROM YOU SOON.
BEST REGARDS.
FAITHFULLY YOURS,
RONALD LEE