Rising raw material prices, manufacturing costs in the Dongguan area of Shenzhen, Guangdong.
Since this year, including copper, oil, including a variety of raw material prices rose sharply, a number of manufacturing enterprises in the Shenzhen and Dongguan areas of Guangdong face enormous pressure of rising costs.
Since January this year, oil prices continue to rise, WTI Crude Oil futures from the end of January 52.1 U.S. dollars / barrel, up to the current 62.65 U.S. dollars / barrel, less than a month up by 20%.
The mainland media “Securities Times” reported on Feb. 25 that Mr. Xu, head of Dongguan Gaosu Plastic Products Co., Ltd.’s main product is stretch film, and the raw material is mainly polyethylene separated from crude oil.
Mr. Xu said, “A truckload of goods just came in yesterday and it’s already up to more than 9,000 yuan per ton.” Its incoming data shows that the price was 7,800 yuan/ton in mid-January, went to 8,050 yuan/ton at the end of January, 8,500 yuan/ton at the beginning of February, and now more than 9,000 yuan/ton. In other words, a month up more than 1,000 yuan / ton, due to the large amount, he last month a machine to use an average of 165 tons of polyethylene, a steep increase in costs.
Mr. Xu said, “Although the previous also to the tens of thousands of yuan / ton, but the rise is not so sharp so fast.”
Mr. Xu posted in the circle of friends that raw materials soared, new and old customers before placing orders, please ask for quotes, need to redefine the selling price of products according to the rate of increase in raw materials.
The price of raw materials rose, the price of the product went up. Mr. Xu has been in the retail channel and e-commerce channels to raise prices, but the main sales group agreement pricing customers have no way to raise prices in a timely manner, because such customers in the contract period can not unilaterally raise prices.
Mr. Xu said, “At present we have submitted to the customer price increase material, the customer received the material needs to be verified, price comparison, reported for approval, etc., a set of processes down to at least two months.”
Mr. Xu said that now is the greater the volume of shipments, the heavier the mood.
Ms. Hu, who operates a communications electronics business in Shenzhen Baoan, said, “I have been a factory for more than 10 years, the impression is not so up, not a category up, is most categories are up. Not up 3, 5 points, but 10%, 20% up.”
The first month of 12 (February 23), Ms. Zhang is located in Shenzhen Shiyan’s foreign trade audio factory to start, the supplier’s price increase notice let her some overwhelmed: resistors up 15%, color box up 20%, film category up 10% ……
Soon, she received from Southeast Asian customers sent 1000 units of audio orders, and asked her to quote as soon as possible. Ms. Zhang gave a quote after calculating the cost of the price increase. The customer said that the price was too outrageous to do.
Ms. Zhang said, “raw materials said the price can be increased, but we are difficult to increase, customers also want to reduce prices, said the serious foreign Epidemic, purchasing power decline. This will certainly affect our order situation.”
In Shenzhen Baoan Shajing engaged in the wireless headset business, Mr. Zhou said he heard that some categories of products price increase is strong, but has not been conducted to his layer, mainly suppliers generally have about 2 months of inventory, can top a period of Time. However, he has heard the supplier in the cry of suffering, “a day a price, some have not taken orders.”
In Shenzhen, Dongguan, two places engaged in PCB trading business, said Miss Liu, suppliers have officially sent a price increase letter to her, several PCB board will be increased from March 1 by 25%, 15%.
Ms. Liu said, “up a lot, business can not do.”
As one of the most important industrial raw materials, crude oil and copper prices are soaring to industrial production and all aspects of residential Life conduction, is considered this round of “reflation” market trigger. Recently, including Zhengxin, Michelin, Giti Tire, Zhong Ce Rubber, Sai Lun tire, including a number of tire companies have announced that due to the rise in raw material prices, will increase the price of some products. Not long ago in late January, more than 10 companies have issued a notice of price increases in tire products, the rate of increase ranging from 2% to 6%.
Home appliance industry, raw material costs account for most of the proportion of operating costs of 70%-90%, raw materials rose once triggered a plunge in home appliance stocks. 23 February, the United States Group in response to investor questions “how to respond to the risk of a sharp rise in raw material prices, including copper” question, said the raw material is the face of the whole industry. The problem.
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