After the Lunar New Year in 2021, the cost of various domestic raw materials has risen rapidly. According to CCTV Financial Report: Compared with before the Spring Festival, the price of copper has risen by 38%, plastic has risen by 35%, aluminum has risen by 37%, iron has risen by 30%, glass has risen by 30%, zinc alloy has risen by 48%, and stainless steel has soared. at 45%, IC chip has risen by 100%. There are also fabrics, papers and rubbers that have not been mentioned, all have different degrees of big increase.
The main reasons for the price increase of raw materials are as follows:
1. In the past 2020, some large oil refineries were closed, and the supply of crude oil fell short of demand, leading to higher prices. The increase in the price of crude oil will lead to an increase in the cost of chemical raw materials, followed by an increase in the price of various materials.
2. The international epidemic tends to ease, and the economies of many countries have begun to gradually recover. Even those countries with more severe epidemics are slowly returning to normal production conditions, especially China’s economic recovery is relatively obvious, so the market has a demand for raw materials. However, the production capacity of foreign raw material manufacturers failed to fully recover, which directly contributed to the rise of domestic raw material prices.
3. In order to stimulate the economy, various countries have adopted loose monetary policies and over-issued currency, which has led to an increase in purchasing demand and thus an increase in the price of raw materials.
In fact, the price increase of raw materials has started in the second half of the previous year, but the price increase has been relatively large after the Spring Festival this year. The increase in the price of raw materials will inevitably lead to an increase in procurement costs. In addition, the international logistics and transportation costs have remained high in recent times. It is said that this situation will not be relieved until May or June at the earliest, so 2021 will be a difficult year for the importers. So Dear Importers, please adjust your strategy as soon as possible and take measures to deal with it!
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