Why the raw material prices rising?

In 2021, a number of enterprises managed to survive the "bankruptcy wave" and "labor shortage", but unexpectedly came a more headache problem: the price of raw materials soared, so high that they could not even buy them with money. The boss complained that many orders had not been fulfilled and profits had already been lost.

Only passed a Spring Festival, why the price of raw materials skyrocketed!

In addition to steel, the fabric, paper, plastic, chemical fertilizer raw materials, daily chemical raw materials, rubber raw materials, traditional Chinese medicine raw materials have risen in response. For all products in a wide range of downstream fields, due to the oversea demand and domestic demand, the increase of products is obvious. The farther away from crude oil in the industrial chain, the greater the increase will be, such as rubber, synthetic resin, etc.

According to recent official figures, copper is up 38%, iron 30%, plastic 35%, glass 30%, aluminum 37%, stainless steel 45%, zinc alloy 48%... Insiders say that now the price of materials rise violently, almost a day price. According to a number of industry chain in the middle and lower reaches of the personage analysis, this round of all kinds of raw materials rise in price tide, lasting. Many factories also issued an urgent notice to inform customers that "raw materials skyrocketed, order the first consultation price, need to re-check the price"...

Raw material price rises wildly, have those effects to foreign trade industry?

In the foreign trade industry in 2020, because of the epidemic, we have to postpone the resumption of work. Faced with the delayed orders due to uncontrollable factors, we can only hope that customers can understand. But still face to be urged by customers burned, but because of the normal return to work by customers cancelled orders......

When we finally got back to work, I thought I could develop a few more new customers and do a great job. However, after the resumption of work, the industry is faced with the cancellation or postponement of the exhibition, other countries have closed their countries because of the black swan, and the customs of the country where the customer is also began to strictly control the import and export of various products, which makes the import and export operation very troublesome, leading to a sharp decrease in the amount of customers' purchases.

As one of the regions with the best epidemic control in the world, China has adopted a series of powerful policy measures to ensure the rapid resumption of work and production, and has become a "safe haven" for global companies relying on a complete industrial chain and supply chain. As a result of the outbreak, many foreign companies have been shifting orders to China from production in their own countries and other countries. As orders rise, domestic raw materials are also soaring. The customer is not a fool, we can not raise the price, once we raise the price, the customer is very likely to reduce the purchase quantity or cancel the order. The price of raw materials has soared to such a high level that it is impossible to buy them even with money. This has led many foreign trade enterprise bosses to complain that many orders have not been fulfilled and their profits have been lost. On the other hand, with the increase of customer demand, there is a shortage of raw materials, which leads to some suppliers can't provide parts to the factory in time and deliver the goods on time.

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