+86-769-82599898 sales@uvink.com.cn
  • UVINK Brand Address Building C, Jieying Industrial Park, Road Bihu 7, Fenggang, Dongguan, Guangdong, China

UVINK > News > Trade News >

The price of materials has been rising continuously. What’s going on?

As the upstream of the printing, the impact of the price of raw materials and packaging materials on the lower reaches is self-evident. China's commodity prices have continued to rise in September, especially as the raw materials closely linked to printing have risen sharply. What are the reasons behind the increase? When will the wind pass?
 
raw materials of printing ink
 

Recently, the rise in raw material prices can really make you wonder about life

Polypropylene is a kind of main raw materials of plastic products, in August to September this year, it emerged as a "servant", industry sources said "its rise to doubt the life". According to the statistics, the price of each ton of polypropylene rose from 7,900 yuan in early July to 9,500 yuan, with a cumulative gain of 1,600 yuan per ton, which is more than 30% compared with the same period last year.
The increase in the amount of plastic materials involved is more varied and the impact is very broad. "it's not just life plastic," some of the industrial plastics companies have been complaining about it.
Plastic materials are tight and enter the seller's market.
There is always a "going up" mentality in the raw material market. At the beginning of the growth of the raw materials, the finished products companies made more purchases. "large enterprises have increased their stock of stock, and small enterprises have taken high frequency procurement, so that the supply of goods has been tightened."
 
packaging materials of printing ink
 

The rising tide is spreading like the plague

Not only the price of raw materials, but the price of packaging materials. Guangzhou Huadu district laundry detergent, body wash packaging material from the beginning of August to now, only one month, the price of packaging materials has increased by nearly 20 percent.
Rising prices from upstream, like the first domino to fall, are moving downstream from the industry chain.
The price of raw materials and packaging materials has been increased, which directly led to the price adjustment of OEM/ODM products manufacturers. A engaged in large chemical contents manufacturer of many years, said from early August, now just more than a month, content of price increases have been from the beginning up to 20% to  the nearly 30%, price increases speed is terrible.
 

Prices rising every year, why is this year so unusual?

Industry veteran said: the core of the reason is that this year the central government to the environmental protection check was intensified, shut down many polluting enterprises directly, this leads to supply tense.
In fact, "the factory of environmental inspection is closed" has become a hot topic, with more than 15,000 related searches in the Internet. At the same time, as the environmental policy has become more stringent, many of the foreign material cannot be imported into China, which has made the market supply more tense.
However, in addition to the order quantity increase in August and September, national scrutiny on environmental shut down some factories core reason, resulting in a decline in supply of these two part of the businessmen to fish in troubled waters, hoarding even colluding, is also the cause of prices soaring.
 
Umall Ink Int'l's warehouse
 

Companies have a lot of complaints about environmental "one-size-fits-all", but it is the trend

After the survey, despite the fact that there are so many reasons for the current price increase, the biggest complaints from companies is the sudden "one-size-fits-all" approach to environmental protection.
A number of small and medium-sized factories have been ordered to shut down as part of the environmental policy, and some have even deployed police to urge them to do so.
As raw materials continue to shoot up, a lot of enterprises have not expected, let some enterprises into a state of low interest. This  chemical raw materials prices is not simply caused by environmental protection supervision, with raw materials form the discourse monopoly of the market are inseparable, so the price of this round of rebound of boom, is more of a man-made factors, not the market demand, China’s economic situation is still low. And the price inflation caused by this artificial factor will eventually return to the reasonable price of the market.
 

The price of materials increases the pressure of enterprise

The official manufacturing PMI in September moved in a positive direction, but as raw material prices rose made corporate cost pressures.
At the same time, environmental protection strengthens the short-term production and operation pressure of enterprises, as well as the unfair competition of the market due to the inconsistency of environmental standards. Some energy supplies are tight.
Moreover, Labour structural supply is tight. With the acceleration of enterprises' transformation and upgrading, enterprises have a great change in the structure of human resource demand, and the demand for new business management talents and new technology application talents is obviously rising, and structural shortages.
 
UV curable ink of UVINK
 

Conclusion

In the past, the price of materials has been raised, and it is reasonable for us small and medium-sized enterprises to raise the price of products in small scale and lots of batches to test the reaction of all parties in the water market. At the same time, the remaining production costs are offset by a reduction in profits. However, now we should not only consider the cost of products, but also consider the process and other issues. For example, PC (polycarbonate) is more expensive, we can use other cheaper materials to improve the same performance, to solve the cost pressure for customers.
 
Rise in raw material to the enterprise is difficult to estimate, some raw materials prices rose more than 50%, even "low price competition in the market has been useless at this time, a lower price means a loss , or is a decline in the quality." At this time, enterprises prefer to choose fewer projects and develop some new materials.
 
There has been a "collective surge" of raw materials before, and the industry has been "shuffled" again and again. If you don't want to be the one to be "shuffled," it's important to make a future layout. Enterprises can either make a timely transformation or take more time to develop new products and new technologies, and excavate the added value of products. Otherwise, reacting to raw material gains is likely to lead to a "dead end". Even if you avoid this shuffling, you can't escape the next time.
 
UV ink of Umall Ink Int'l
 

Warm prompt

 
Warm prompt