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    Soaring Price Of Raw Materials: Amazing Price Rise Of Raw Materials!

    2020/11/21 9:30:00 16

    Textile Man

    Price rise of raw materials: involving industries and products

    The price rise is fast and amazing

    Chemical raw materials: join hands to enter the era of ten thousand yuan

    At the end of the second quarter, as the sales of home appliances began to improve, the prices of raw materials began to rise. Near the end of the year, the export of small household appliances has started the "explosive order" mode. However, what bothers manufacturers at this time is that the prices of raw materials have soared all the way, and they can't even buy them with money. Many orders have not been made and the profits have been lost.

    MDI, an important raw material for refrigerators and freezers, has been soaring since June. It has soared by more than 24% in October. The quotation has soared from 10000 yuan to 20000 yuan. At present, the market quotation is 21000-23500 yuan / ton.

    The plastics industry is led by ABS. At present, the domestic market price of ABS is rising sharply, and some brands are increasing by 100-1200 yuan / ton.

    The PC market also rose strongly, with the latest price of 20566.67 yuan / ton on November 16, up 3.52% in the last five days, 17.30% in 10 days, 21.70% in 20 days, 25.92% in 30 days and 41.51% in 60 days.

    Chemical industry keeps rising, many products have entered the era of ten thousand yuan. It is expected that the prices of chemical products and raw materials will continue to rise in the last two months of 2020, and the hot trend may continue until next year.

    Furniture raw materials: wood, sponge, etc

    As an important raw material for sponge foaming, soft foam polyether has been hovering at the highest level in history. Based on the guidance price of CNOOC and shell, the quotation reached 21000 yuan / ton in mid October, a record high. The latest offer is 19500 yuan / ton, up 126.74% in the past four months.

    Polyether foam is one of the more durable raw materials for furniture production. As the main raw materials of sponge production, MDI and TDI also increased significantly.

    In addition, timber prices are also rising. Nearly 80% of China's household timber depends on imports. Currently, affected by the epidemic situation, major foreign ports are closed. In addition, domestic cost increases, supply gap, environmental protection storm and other impacts, since September, timber prices have risen in a wide range.

    This year, the price increase of cartons can be expressed with the image of "year up to the end of the year". As early as February to march at the beginning of the year, carton prices began to rise all the way. In February, in just one week, more than 50 domestic paper enterprises announced to increase the price of cartons, with an increase range of 8-10%. During this period, the price of cartons has gone through 4-5 price adjustments.

    Half a month after the price increase of the main raw materials of synthetic leather, the prices of dry and wet resin rose sharply again, and the prices of elastic cloth and related auxiliary materials also increased successively. ?

    High level operation: Nonferrous Metals

    According to the latest data of China Nonferrous Metals Industry Association, the prices of copper, aluminum, lead and zinc have remained high since July, exceeding the pre epidemic level.

    Data from Shanghai Nonferrous Metals network on November 13

    The average price of electrolytic copper was 52020 yuan / ton, 15380 yuan / ton higher than the lowest price of 36640 yuan / ton so far this year;

    Electrolytic aluminum was 15630 yuan / ton, 4410 yuan / ton higher than the lowest price of 11220 yuan / ton;

    Lead ingot was 14675 yuan / ton, 1300 yuan / ton higher than the lowest price of 13375 yuan / ton;

    Zinc ingot was 20070 yuan / ton, 5750 yuan / ton higher than the lowest price of 14320 yuan / ton. ?

    Textile raw materials:

    The surge triggered a "rush for cloth"

    Since September, due to the out of control epidemic situation in India, many large export-oriented textile enterprises in India have been unable to guarantee normal delivery. In order to ensure that the supply of goods in the Thanksgiving and Christmas seasons will not be affected, European and American retailers have transferred many orders originally produced in India to China for production, and the turnover of factories has soared by five times.

    With the overall recovery of the textile and clothing industry, raw materials, cotton yarn, grey cloth, fabrics, etc., China's textile and clothing exports are facing a severe test. The textile and clothing export orders received in August and September may not be implemented due to the substantial increase in production costs; On the other hand, some foreign trade companies have received orders to export to Europe, America, ASEAN and other countries, but they can't find suppliers or manufacturers to process on behalf of them. At present, there is a situation that "although there are many orders, there are few to follow".

    In addition, under the expectation of RMB appreciation, the imported yarn is also in the "closed plate" state without quotation. In order to ensure the production and delivery, a "cloth rush" has also opened the curtain in the textile industry.

    According to the survey of more than 90 designated textile enterprises by China's cotton early warning system, raw material inventory and textile output of textile enterprises increased month on month in October, while yarn and cloth inventory decreased.

    In October, the price of cotton yarn at home and abroad rose sharply. The average price of domestic 32 pure cotton yarn in October was 21668 yuan / ton, which was 3156 yuan / ton higher than last month, 556 yuan / ton higher than the same period last year, or 2.63%; the average monthly price of imported 32 pure cotton yarn was 21601 yuan / ton, 3006 yuan / ton higher than last month, 409 yuan / ton higher than the same period of last year, or 1.93%.

    Cotton has entered the rising range since May. According to the statistics of the business agency, from April to September 2020, the domestic lint price as a whole maintained an upward trend, with a cumulative increase of 1811 yuan / ton, or 16.31%. However, after entering October, the increase of cotton price accelerated sharply. As of October 19, the average price of domestic lint spot market was 14948 yuan / ton, which was 2020 yuan / ton higher than that on October 1, or 14.62%, and 17.03% higher than that of last year.

    In addition, due to market rumors that affected by La Nina phenomenon, this year will be the once-in-60-year cold winter, down enterprises have hoarded goods, resulting in insufficient supply. The prices of duck feather and down will reach two peaks in May and October 2020 respectively. At the beginning of May, the price of white duck down with 90% down content rose to 180000 yuan per ton, which began to rise all the way from August. In late October, it reached 290000 yuan per ton, up 61% compared with the price in May. Recently, the price hovered around 280000 yuan. However, the price of duck feather has soared to 250000 yuan / ton in more than a month since the middle of May, hovering between 200000 yuan and 270000 yuan / ton from July to September, and once rose to 400000 yuan / ton in October.

    Although the export performance of the textile industry is excellent, for some return orders, the textile and clothing industry generally judges that it is "emergency order". These orders are difficult to stay in China for a long time because they are not dominant in labor costs. ?

    Soaring raw materials

    Driving the downstream market is the internal cause

    Judging from the substantial growth of raw materials, we can see that the pull of downstream market is an important factor. For example, after the epidemic has been basically controlled, many downstream industries have recovered. Household appliances, furniture, mattresses, sponges and so on have affected the polyurethane industry chain, such as MDI, TDI, propylene oxide, polyether and other raw materials and plastics. PC, ABS, GPPS price rise has played a big role. India's recent return of orders to China has also greatly increased the prices of many raw materials in the textile industry chain. In the future, infrastructure and other industrial projects will still lead to a large number of plastic chemical products, and the contradiction between supply and demand will inevitably lead to price changes.

    Textile man receiving new order

    Please be careful

    First, confirm the price fluctuation trend of raw materials and whether the supply of raw materials is stable, and then judge whether it is necessary to adjust the quotation or shorten the quotation period. In addition, the exchange rate fluctuation should be taken into consideration in the quotation for foreign trade orders, so as to avoid the profit of orders being eaten by other factors such as raw material rising and RMB appreciation.


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