U.S. housing boom boosts imports from Asia

Thanks to a housing boom in the United States, Asian manufacturers are sending the highest level in seven years for furniture and building materials in containers.

U.S. imports of furniture and building materials from Asia, aimed at retailers such as Wal-Mart Stores Inc. and Target Corp., rose 6.3% in the first four months of this year compared with the same period last year to its highest level since 2007, according to figures from the Japan Maritime Center.

Asian suppliers as Li Fung Ltd., which exports some home accessories, tableware and crafts, are benefiting from a rebound in the U.S. economy as increases in jobs and funding costs at historically low levels build confidence Americans to purchase homes. That demand is helping to boost exports of chairs and beds to decorate houses and materials and plastics used in construction.

'If you are buying a new house needs a new decoration', said by telephone last week Rahul Kapoor, an analyst at Drewry Singapore Financial Services Ltd.

He added that 'the furniture and building materials will come from Asia. That is certainly positive for the demand. "

Total U.S. imports of furniture and plastic materials and construction from Asia rose to 971.678 standard containers, TEU in the first four months of this year, compared to 914.042 a year earlier, according to figures from the Japan Maritime Center .

Li Fung, who is also the provider for clothing and larger retailers like Wal-Mart toys, recorded an increase of 17% in net profit to a record $ 725 million in 2013 due to higher sales.

HOME SALES

The largest customer of the company based in Hong Kong is Wal-Mart, which accounts for 15.4% of sales, according to data compiled by Bloomberg, followed by Target, the second-largest U.S. discount retailer, with 5.8% of revenue.

The increase in imports can be a boost for the two discount stores, which have struggled to increase revenues in the United States.

In the first quarter Wal-Mart, which closed on April 30, sales advanced 0.8% to 114,200 million while revenue at stores of competitors in the same industry in the United States suffered little change.

At Target, revenue increased 2.1% to 17,100 million in the first quarter. Sales at department stores fell for the house to the extent that U.S. comparable store levels plummeted 0.3% in a second consecutive fall.

United States recorded the largest increase in new home sales in 22 years in May as sales advanced 18.6% in the month, the largest increase for a month around the country since January 1992, according to figures from the Commerce Department.

However, charges for the transport of containers from Asia to the United States fell this year to the extent that an increase in new capacity is outpacing the increase in transported drawers.