Raw materials price increasing

Recently received price increase notification letters from your China suppliers? Listen to their grievances or treat them as lame excuses and turn to other suppliers? 

Pay attention to China market, you will get the trend of raw material prices from a variety of information channels.

It is the year of 2016 and China's raw materials price fall in crazy increasing. In this year, Chinese government has taken strong actions to close down backward production facilities and many companies were eliminated. Further more, production capacity of the whole industry is on the decline, existing manufacturers can’t provide enough raw materials. Raw materials manufacturers such as steel mills and paper mills make windfall profits along with intermediate traders, while the downstream factories fall in to the operational difficulties. They not only have to bear the pressure of rising prices of raw materials, but also the rising wages and logistics costs. 

To mention some samples, PVC price rose by 60%, plastic price rose by 30%, iron price rose by 30%, glass price rose by 40%, sponge price rose by 30% and carton price rose by 30% in the last 3 months.
You can see that even most of Chinese factory are affected by the increasing price.

 Although the raw materials price all on the way up, but many companies didn’t raise their products price immediately because of the risk of losing their customers, many companies have to make cutbacks after complete the placed orders to reduce losses.

It’s unavoidable that our company affected by the increasing prices of raw materials as a pet toys factory. Our products are made up of many kinds of materials such as sponge, plastic, corrugated paper and so on. Both of material prices and wages for workmen are all increased. We have chosen to stand alone over the past few month, we don’t want to lose our customers.

But now, there’s no sign that the price of materials will be a decline until the following spring. We remind our customers to place orders if you have a procurement plan because we will raise the price of our products in the near future. Last, we will cut the price when the materials price is decreasing.