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Reflections on rising prices of raw materials

Reflections on rising prices of raw materials

Sep 22,2021

Suppliers have sent price increase notices continued since the resumption of production after COVID-19 from 2020, the price increase is mainly caused by the substantial increase in raw material prices. All raw materials prices are continuing increase in 2021, it can be said that they have entered a period of rapid skyrocketing.
According to the data, the highest turnover 47 domestic futures products, 45 products have risen in price since 2021.

There are already 20 futures products that have increased by more than 20%, and 10 of them have increased by more than 30%.

They are styrene, glass, hot coil, rebar, iron ore, thermal coal, crude oil, PVC and Shanghai aluminum.

Look thought from current rise in prices of major commodities, price increase has spread to all industries. It is inevitable that all industries will set off a frenzy of price increases.Of course, All cost increased will be transfer to consumer to pay for it. Citizens incomes that cannot keep up with price increases will lead to a decline in purchasing power, which directly affects citizens’enthusiasm for consumption, which in turn will be transmitted to the company’s sales and production, forming a vicious circle. So company should carry out effective solution to control cost for example look for new supplier channel, build up finished product management system, increase employee cost sense. Try to minimize transferring increase cost to consumer, so as to ensure that the supply relationship is functioning well.