The rising tide of price has swept across the country, the physical industry is facing fatal test.
Since 2018, house price has risen madly, the price of coal, steel and paper industries also have been rampant. After house price was uncovered, the cost of transportation, chemical raw material, electronic component, packaging and printing began to surge. Under the frenzy of “up, up, and up”, China’ s industrial sector has already boiled.
Business is difficult to do, the last three months are traditional busy seasons, but raw materials are skyrocketing, the price of various accessories also increases, including transportation cost, labor wage and so on, we feel deeply pressured by mountains. But seeing that export and domestic demand are not improving, brand makers are desperately squeezing upstream suppliers for price war, this is a desperate pace! In this boiling economic environment, how many companies can survive in 2018?
Energy, raw materials, freight, and industrial manufactured goods have risen
In September of 2018, the negative growth of PPI for four and a half years was finally reversed, which mark the official opening of overall price increasing in China' s industrial sector. In fact, since the beginning of this year, bulk raw materials have started to rise, such as coal, iron ore, and paper, and have been transmitted to the entire industrial sector in a few months.
Affected by de-capacity and other factors, the price of coal-carbon steel mania
Affected by industrial de-capacity and destocking of property market, domestic coking coal and thermal coal increased by 150% and 100% respectively compared with the end of last year. As of October 21, the comprehensive steel price index was 79.00, up 19.17 year-on-year, up 22.63 from the beginning of the year. The prices of key steel products rose by 27.4% and 27.9% year-on-year, such as high-grade, three-grade rebar and hot-rolled coils.
The skyrocketing of chemical raw materials will affect downstream industries
In the past six months, upstream chemical raw materials have begun to soar. TDI rose from USD1515/ton at the beginning of the year to USD7575/ton, domestic rutile titanium dioxide increased from USD1410/ton at the beginning of the year to USD2120/ton, experts firmly believes that it will continue to rise. Neopentyl glycol has risen from USD9090/ton has risen to USD2090/ton. Compared with the beginning of this year, the market price has increased by more than 50%, and many varieties have doubled or even doubled, such as butadiene rubber, acetone, propylene, butadiene and butadiene rubber. Now the cost of per pair of work glove is higher about three cents than the original, so the price of protective gloves is also rising.
Freight increasing affects all walks of life
On September 21, China government issued the "most strict rule", and the freight charges rose. In some areas, the logistics charge increased from USD1 to USD1.6, the per ton transportation cost of building materials increased by USD16, the cost of feed transportation increased by more than 35%, the cost of chemical raw materials rose by an amazing amount, and the transportation charge of coal carbon rose by USD1.6/Ton. So the rise in the price of work gloves is the general trend.
After hardly digesting the rising pressure of previous rounds of raw paper, the packaging and printing industry can not hold on any long and began to revengeful rising in September, the first 10% increasing has been fully rolled out, the subsequent upward pressure is still very huge. . In addition, glass` s price has rose 15%, circuit board` s price has increased 10%, component` s price has increased 5%, all aspects of industrial manufactured goods are brewing price increasing.
Under the circumstances that various costs have risen sharply, and domestic and international market demand is sluggish, some enterprises with insufficient funds, sharp decline in orders, lack of innovation, and high debt will be the first to fall. In such environment, Huanyu reminds customers to choose safety gloves and manufacturers with good reputation and strength, otherwise it will damage your interests.