Material price soars


Since the end of last year, affected by factors such as capacity reduction and tight international relations, the price of raw materials has soared. After the CNY holiday, the "price increase wave" surged again, even more than 50%, and even the wages of workers have increased. "... The pressure from the upstream "price increase" is transmitted to downstream industries such as shoes and apparel, home appliances, home furnishings, tires, panels, etc., and has varying degrees of impact.


Home appliance industry: There is a huge demand for bulk raw materials such as copper, aluminum, steel, plastics, etc. At the peak of year-end shipments, sales promotion and price increases "fly together."


Leather industry: The prices of raw materials such as EVA and rubber have soared across the board, and the prices of PU leather and microfiber raw materials are also about to move.

Textile industry: The quotations of raw materials such as cotton, cotton yarn, and polyester staple fiber have risen sharply.


In addition, notices of price increases of all kinds of base paper and paperboard are flooding in, covering the wide area, the number of companies, and the magnitude of the increase, exceeding many people's expectations.

As time goes by, this round of price increases has passed from the paper and cardboard links to the carton link, and some carton factories have a single increase of as much as 25%. At that time, even the packaged cartons may have to go up in price.

On February 23, 2021, the Shanghai and Shenzhen raw material prices rose and fell a total of 57 kinds of commodities, which were concentrated in the chemical sector (23 kinds in total) and non-ferrous metals (10 kinds in total). The commodities with an increase of more than 5% were mainly concentrated in Chemicals sector; the top 3 commodities with gains were TDI (19.28%), phthalic anhydride (9.31%), and OX (9.09%). The average daily increase and decrease was 1.42%.

Affected by the "supply shortage" factor, the prices of raw materials such as copper, iron, aluminum, and plastics have continued to rise; due to the collective closure of large global oil refineries, chemical raw materials have soared almost across the board...The industries affected include furniture, home appliances, electronics, textiles, tires, etc.


Post time: Mar-31-2021