Why Raw Material Prices are Increasing in China in Q4 of 2016?

date :

2017-02-08 09:09:20
You might have noticed that in Q4 of 2016, the raw material prices of some industry has grown sharply. This also affects plastic industry that Easylock (Shantou Leqishi Plastic Products Co., Ltd) is in. The raw material price of some industries have an increase raging from 8% to 19%. Some suppliers have no choice but to slightly increase the price.

Increasing Price of Plastic Raw Material

What on earth that results in the rise of the price of the raw material?

1. On the Demand Side:
1). First of all, the Chinese economy is always slow down in winter especially during the Chinese New Year.
2). And besides, the intention of import is not as attractive as before because Chinese RMB has lost 10% of its value against US dollars last year.

2. On the Supply Side:
The lack of inventory accumulation may put pressure on the price to go down.

Even though the price of PP plastic has go up last year, to prevent the rising price of our plastic food container, Easylock has give quick responce to avoid too much impact on the rising price of the raw material. We add inventory accumulations of our raw material and have control on the cost of production to ensure offering stablize supply price to our customers and prevent shipping delay.

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