Dear customers, Don't say you don't know.
Now it's all over the industry, business started since from Feb, but the enterprises are difficult to stock up enough material！
Raw materials skyrocketed, in the face of high prices, due to the greater risk of stock, many parts suppliers are in a wait-and-see state, and even dare not to stock more material. So that most suppliers have encountered a shortage of spare parts supply.
"now, the supply of spare parts is relatively small. Due to the rising prices of raw materials, many suppliers have a low willingness to stock up, and some spare parts are even out of stock" Said by Zhang, a boss of stainless steel roll material supplier.
At now, the price of raw materials fluctuates a lot, so most of the accessories are implemented ladder price. At the beginning of the new year, the prices of raw materials have skyrocketed, and enterprises are facing a lot of purchasing pressure, which makes
many enterprises dare not do inventory at all. Seeing that the start of construction is imminent, most supplier can not let go of their hands to purchase and produce products.
At the end of 2020, when the prices of metal materials such as copper, aluminum and stainless steel, plastics, chips, refrigerants and other materials have been collectively increased, many motorcycle and accessory companies have been unable to bear the pressure and have increased their prices by a wave, generally by 5%. -15%
The year 2021 has just started, and there is a shocking news that almost everyone inside and outside the industry is paying attention to, that is, the prices of various raw materials have risen sharply. Copper, plastics, aluminum, iron, glass, zinc alloy, and stainless steel have all increased by 30%. ~45%..
At the start of Feb, due to rising costs, the cost of its products surged by 5-10%, and product prices have not risen for a long time. According to the current trend of raw material prices, this price increase is almost inevitable. However, due to the current large volume of products and low prices, the situation of frequent price wars has been formed!
This price increase can only maintain the cost without losing money, but it cannot withstand the 10-20% jump price increase of raw materials every day.
Someone ridiculed in Wechat friends circle: the word "price increase" is too vulgar, it should be: Congratulations, the product you have chosen has appreciated again. Many companies have sent a circle: Due to the continuous price increase of raw materials, please consult the price when placing an order and re-quote all products.
Under this circumstance, production companies have been forced into a dilemma.
On the one hand, the rise in raw materials and the increase in production costs of enterprises, on the other hand, it is difficult for the terminal market to absorb the cost pressures undertaken by enterprises.
Faced with this difficulties in the increasing prices of raw materials, labor, and freight, many companies have to continue to bear the pressure! Go ahead with heavy weight!
In May 2021, the price of copper wire materials has increased greatly. Electronic components, plastic materials, PCB boards, rubber parts, and cardboard packaging materials have all been rising prices. This has caused a shortage of downstream materials and high cost pressure.
The current exchange rate fluctuations are increasing frequently, higher freight rates, tight containers,so I suggest all our foreign customers please inquire in advance for products and placing orders, the previous quotations are no longer valid. All products are subject to current material prices again！
Lillian Liang
Date: 2021-05-14