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Listen to the boss say skyrocketing raw materials
Article source:Jinjiang economic news Page views:3775 Release date:2019-09-03 01:32:56
Recently, the rise of raw materials in the traditional industries in Jinjiang one after another, cartons, PVC, steel, glass, milk powder, palm oil, and even freight rose across the board. Under an "up, up and up" craze, many enterprises especially manufacturing enterprises have begun to complain, because of the rising prices of raw materials increased their cost burden.
So what is causing this round of raw material up?
In September this year, a negative growth of up to four and a half years of PPI (producer price index) finally reversed, which marks the official opening of China's industrial sector comprehensive price. In fact, from the beginning of the year, coal, iron ore, papermaking and other bulk raw materials began to rise, a few months after the guide to the entire industries.
In September 19th, the Ministry of industry and information technology department, the National Energy Bureau jointly announced the 2015 elimination of backward production capacity and excess capacity to complete the task of the announcement, after examination, paper, electricity, coal, iron and other 16 industries were completed in 2015 and eliminate backward and excess production capacity to reduce the target task, but also raise the coal, iron and steel, paper and other commodity prices, some products even appeared tight supply.
In September 21st, known as "the most strict rule over the order of the new version of" transportation vehicle management regulations "and" regulation of highway freight illegal overloading behavior special action program "formally implemented, the resulting increase in logistics cost, from raw materials to the circulation of commodities are not spared.
Cause the rise of raw materials is bound to more than these factors, but the price is an indisputable fact. From the macro level, the elimination of backward production capacity and excess capacity, logistics and transport, environmental protection and other normative regulation is not the ultimate goal, into the healthy development for the industrial production of the road, and the pain, maybe the process is possible, through a broader sky harvest may not be possible.
To the paper industry, in fact, in the past few years, the market competition, disorder, the growth rate of the paper industry has been low, long account period and high risk.
We as the most experienced two plants, upstream and downstream enterprises triangular debt phenomenon has existed for many years. Supply is relatively tight, customers must first deposit before we dare to produce, upstream enterprises also treat us so. Therefore, we will be existing customers profit, order quantity, payment conditions and other cooperation content tracking, do not meet the requirements will suspend production plan, priority to meet the needs of high-quality customers." Quanzhou Baoshu packing Limited company administrative personnel manager Ni Shaocheng said that the rise in the price of raw materials is not only a challenge is an opportunity, financial capacity, scheduling and management competence of enterprises is more solid to survive, and gain greater market space, because after this round of industry adjustment, I believe the future will be better. Do.
With suppliers in time to pass on the cost of risk is different, finished goods in the face of the end consumer market, each price increases need a longer buffer period. How to rationally treat this wave of price increases, looking for ways to deal with, avoid flour too expensive bread phenomenon, is the key to the eyes of the manufacturer.

No place to pass on the cost of baby shoes enterprises "smell the price achromatosis"

In this wave of price cuts, the impact of rising oil prices of derivatives represented by PVC's wide, Jinjiang shoes and apparel enterprises to baby products enterprises have felt the pressure of rising prices. And when the pressure superposition of such raw materials prices pressure and logistics costs when the enterprise harm is so many enterprises complain.
For a wide range of this wave of menacing prices, many shoes and baby supplies enterprises can only be through internal channels to resolve the pressure. But many business owners also said that if this situation continues, does not rule out the decision to make prices in next year's operations.
1, oil derivatives prices Pu money does not necessarily buy raw materials"
Fujian Xinbang new Mstar Technology Ltd general manager Ding Qingjing told reporters that the company mainly applied to the EVA, the color of rubber and other raw materials, the raw material prices have continued for a period of time, our overall cost rose along with 30%~40%." Ding Qingjing said that due to rising oil prices, the introduction of new logistics policy and raw materials trade speculation and other factors superimposed, production costs are rising recently, "we have safety stock for two or three months, at this stage the cost increase is still in the enterprise within the acceptable range, but if the raw material prices continued to the end of the year rise, will be further considered to enhance product factory price, or negotiate with customer price to face the pressure of rising costs."
"These two months are hard." Jinjiang a diaper brand enterprise boss Mr. Su told reporters, ZhiNiaoKu sources of raw materials is mainly petrochemicals and fluff pulp, the fluff pulp and high water absorbing resin is the key raw material SAP. Consecutive months of rising raw materials prices in June, a ton of non-woven fabrics to the present price increase of nearly 60%, many companies also took the money to buy raw materials, leading to the original production plan has been disrupted, a lot of list are delayed. Here the dealers anxious to get the goods, there is no way manufacturers delivery, get jittery.
A busy schedule to buy raw materials, on the other hand with the factory negotiate the delivery schedule, seemingly takes time and communication can solve things, in fact is not so simple. Mr. Su told reporters that in recent years, increasing diapers brand competition, enterprises generally profit is only about 10%~15%, the raw material price, basically to have profit space to squeeze out. At present, we are negotiating with major dealers price matters, if raw materials continue to drop, terminal prices will be carried out in the near future. Even more frightening is that if the raw material continues to rise, it is estimated that there will be a large number of enterprises will collapse, a large number of brands will be shuffled out."
Why is the price, Mr. Su said, the price seems only a diaper raw material, but it is in many aspects, including the carton, transportation cost, labor cost. For its own factories and brands, the compression is still relatively good. For OEM brand enterprise, can get through the "winter" can only see luck.
2, sacrifice profits for the order of baby shoes industry could not escape the "cost"
Affected by rising raw material prices, some companies have adjusted the ex factory price. Reporters from the Jinjiang Hongtai shoes limited company, the company since October the sole product price adjustment, "the wave of raw materials prices rose about 20%, but the price only rose our sole 10%~15%. Raw material prices, in the middle reaches of the manufacturing enterprises to withstand the relatively large pressure." Hongtai shoes deputy general manager Chen Ruoling told reporters that the sole product pricing is affected by two factors: one is the raw material, the two is the downstream demand. If raw material prices, downstream demand is not strong, sole enterprises can sacrifice part of the profits in exchange for orders.
For the future market, whether there will be a large range of price adjustment, Maotai shoes general manager Ding Sien expressed their own views. "The industry has to be raised ex factory price of the voice, but the real price increases the enterprise is not much, everyone is waiting to see more fluctuation of raw material prices and shoe market." Ding Sien said that now is nearing the end of the year, if the sudden increase in the ex factory price will cause some impact on the end of the settlement, and there may be competition for customers.
At the same time, Ding Sien pointed out that the shoe manufacturer will be the raw material reserves, this wave of price adjustment is more of a new batch of orders, but this round of rising raw material is just a short period of time the outbreak caused by a price increase the possibility of very small. "Whether this round of rising cycle long and short, those who have a large stockpile of enterprises, enterprises in the same industry are compared to obtain more profits."
It is understood that the impact of raw material prices on downstream finished products has not yet appeared. Because the shoe is now the production materials used are mostly original purchase, but if the finished shoe now under a single purchase material, its price will be higher than the original price, price volatility is likely to highlight the product enterprise in 2 months.

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