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raw materials cost rises up crazily Jun 08, 2021

The first wave of raw materials to open the year to rise in price!

The year of 2021 has just begun, ushered in a shocking news, almost the industry and outside the attention, that is, the price of a variety of raw materials, copper, plastic, aluminum, iron, glass, zinc alloy, stainless steel are rising 30%~45% respectively.

According to the price monitoring of the business company, on February 23, 2021, in the list of rising and falling prices of raw materials in Shanghai and Shenzhen, a total of 57 kinds of commodities increased month-on-month, concentrated in the chemical sector (a total of 23 kinds) and non-ferrous sector (a total of 10 kinds), the increase of more than 5% of commodities mainly concentrated in the chemical sector;The top three commodities were TDI(19.28%), benzene anhydride (9.31%) and OX(9.09%).The average daily gain or loss was 1.42%.

Affected by "supply shortage" factor, copper, iron, aluminum, plastic and other raw materials prices continue to rise;As the world's big refineries shut down, chemical feedstocks soared almost across the board.The industries affected involve furniture, home appliances, electronics, textiles, tires and so on.

Chip shortage causes price rise, paper price rise, chemical raw materials rise......This wave of price rises has already spread to the whole industry.Now, the rising tide spread to the home appliance industry, so that the entire home appliance industry chain under obvious pressure.

A number of research institutions recently released a TV panel price vane briefing, expected that the global LCD TV panel market supply will continue to the second quarter.Supply continues to be tight, pushing the price strategy of head panel manufacturers to become aggressive, LCD TV mainstream size products from February to March prices will maintain a large increase.

On February 18th, the first opening day of the Year of the Ox, general plastics had a good start. PE prices rose by 8.06%, PP prices rose by 7.18%, and PVC also closed up strongly.Engineering plastics enterprises have also recently issued price adjustment announcements, including DuPont, SK, South Asia Plastic, BASF, Songyuan Group, Changchun chemical industry and other enterprises, prices vary.

From the year before to the year after the year, the paper market has been in a rising channel, whether it is corrugated paper with waste paper as the raw material, or cultural paper with wood pulp as the raw material, special paper, has experienced multiple rounds of rise, the price has broken new highs.According to Taizhou Packaging Federation statistics, this year, corrugated rose at least 10%.

Business executives from all walks of life, said the rise in price, the price of raw materials promoted to an unprecedented high points, related businesses including range hood, gas stoves, electric water heater, gas water heater, integration, steam oven oven, refrigerator, washing machine, air conditioning, bathroom cabinet, shower room, hardware, toilet, and other products manufacturers, in the face of the rise in raw material and huge cost problem.

Faced with the rise of raw materials, manufacturers will surely quickly raise product prices to brand owners. Brand owners' profit is insufficient to support their development, so they will surely raise channel prices for online and offline channels, and the final retail price may be significantly increased.

Raw materials are one of the biggest costs of products. In the face of rising prices of raw materials, especially in recent years, the price profit of various industries is transparent, and even a small margin will make enterprises unable to survive.As a result, a new wave of price rises may be inevitable.

Many insiders said that the price trend of products including range hoods, gas-fired cookers, electric water heaters, gas-fired water heaters, integrated stoves, steaming ovens, refrigerators, washing machines, air conditioners, bathroom cabinets, shower rooms, hardware, toilets and other products in 2021 has become a reality.

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