After the Lunar New Year, prices of basic raw materials across China have risen alarmingly. According to the latest quotes, commodities such as copper metal, nickel and zinc, PVC (heat stabilizer), and even kitchen appliances rose by one to fifty percent. Some analysts believe that this big increase in raw material prices is related to the increase in operating costs and China’s ban on foreign imports of raw materials.
After the Chinese New Year, China kicked off a full-scale price hike, with companies issuing price increase letters due to the impact of raw material prices. China’s “Securities Times” reported last week, affected by the sharp rise in raw material prices, many waterproof materials manufacturers have issued price increase letters to raise product prices to respond. Oriental rainbow, Hongyuan, Yuhong, Liaoning Dayu, Yuhong, Huarui and other industry head enterprises have officially announced price increases. According to incomplete statistics, the official announcement of price increases in waterproofing materials manufacturers have more than 12. The rate of increase of 10% to 20%.
In terms of raw materials, copper prices rose 51%, nickel rose 38%, zinc rose 31%, PVC rose 38%, etc. The price of raw materials led to a big increase in the price of household appliances, including range hoods, gas cookers, electric water heaters, gas water heaters, air conditioners, refrigerators, washing machines, televisions, small household appliances, bathroom cabinets, shower rooms, hardware, etc.
Cotton price increases lead to cotton fabric price increases
Zhejiang clothing businesswoman Zhang said in an interview with Radio Free Asia on Monday (8), raw material prices rose wildly, and even agricultural products cotton and paper prices are higher than last year fifty percent: “cotton prices rose a lot, and now many are hard material prices, copper, iron and other price increases, paper has increased by 50%, I have a good friend is doing printing business, cotton (price increases) used to make clothes Because many years have not increased prices, this is a comprehensive price increase, and very powerful.”
Hefei U.S. refrigerator company in the notification letter to customers wrote, “Due to the continued rise in raw materials, it has been decided since March 1, the United States refrigerator product price system up 10% to 15%, thank you for your understanding and support.”
Home appliances prices from down to up and blackouts related
Ms. Zhang, a businesswoman, said that for many years, the price of white goods continued to decline, but recently increased substantially: “The trend of price reduction of white goods has been many years, many years without price increases, and now the price has increased. White goods price increases are relatively rare. In recent months, many factories a moment of power outages, a moment of water or shutdown, I think with this also has a relationship.”
Mr. Li, an engineer engaged in steel research, said to the station that China’s steel production has increased greatly, but the price of steel is also rising: “Steel production has not decreased, but increased, but the price has gone up, up a lot. Then there is the price of copper, many home appliances use copper, the price of copper is also rising, and its rate of increase is similar to that of steel.”
Chinese construction steel prices continued to climb on Feb. 22, with the average price of rebar at 4,656 yuan a tonne, up 74 yuan from the previous trading day. Copper prices rose from 58,000 yuan a ton in early February to 68,000 yuan to 70,740 yuan at the end of the month.
Plastic rose as much as 153% copper surged 51%
According to another Chinese media report, the recent, the global oil prices climbing, a variety of chemical raw materials have jumped. According to global plastics incomplete statistics, the current price increase in China’s chemical sector has formed a mountainous trend, some products sold year-on-year rose more than 10,000 yuan a ton, the price increase of up to 153% or more.
War Wolf diplomacy increases inflationary pressure
Commander, a finance scholar at Shandong University, told the station that the price hike of basic raw materials in China shows a structural change at the Time of supply and demand: “For example, China imposed some inappropriate restrictions on iron ore, coal, and some steel from Australia in the previous phase, resulting in the blocking of important sources of goods in the world. Many very important basic raw materials are now not supplied.”
The commander said that China’s raw material prices soaring the brunt of the private sector, state-owned enterprises due to the control of national resources, and not too affected. If the Chinese government does not relax restrictions on the import of foreign raw materials, raw material prices will continue to rise and difficult to fall back. This will eventually cause private enterprises to close down.
Over the past six months, China has launched a series of trade wars against Australia, affecting products such as Australian barley, cotton, red meat, seafood, sugar, timber and coal exports. More recently, China has warned of restrictions on rare earth exports to the United States, instantly causing prices of many types of metals to soar. In addition, oil prices continue to rise, making China the world’s factory of raw material import prices also rose.
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