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The Price Of The Plastic Industry Is Coming Up Again! Prices Of Raw Materials Have Risen
- Jul 17, 2018 -

The hot weather in Dongguan continues. I believe that in this hot weather, many plastic traders are also very angry. Plastic trade has a certain market base in many towns and streets in our city.

In recent years, under the influence of environmental pressure and other factors, plastic raw materials once again entered the rising channel. Recently, reporters learned that, in two months, the price of plastic raw materials increased by more than 20%.

Dongguan has a large number of plastic raw materials traders, raw materials rose sharply, the impact of these traders can be imagined. At the same time, downstream businesses were also not immune. Against this background, many enterprises have to find solutions.

The highest rise in price is over 20%

Before talking to reporters, Peng Hua, the general manager of Guangdong Dongda technology limited, just received a call. A raw material supplier told her that the price of plastic materials would be up again.

At the end of 2017, the price of raw materials had fallen slightly, but since the beginning of the year of 2018, the price of raw materials has risen comprehensively, and the plastics industry has been rising.

Since this year, Peng Hua's feeling is that the price of plastic materials has been rising all the time, some plastic raw materials, the highest increase of more than 20% in two months, which makes the plastic traders like Dongda science and technology are miserable.

Wang Yong, general manager of Dongguan Shuo Industrial Co., Ltd., also introduced to reporters that the price rise of plastic raw materials this year, a big feature, a large price increase, "the last price rises, the rise is around 10%, which makes many enterprises and traders unprepared."

Under the environmental supervision activities in China, the overall utilization rate of recycled plastics industry has remained low in recent years. The waste plastics of living sources have been banned by the end of 2017, and industrial sources will be completely banned by the end of 2018, and the whole import waste plastics industry will be a history.

Wang Yong, this year, the comprehensive construction of recycled plastic is seriously inadequate, the corresponding supply is also long in a tight state, resulting in domestic recycled plastic prices under the new material under the downward pressure, the price has been maintained at a high level.

Impact plastic industry chain

Plastic raw materials traders are the first to be affected by the rising price of plastic raw materials. Peng Hua told reporters that, now, many plastic raw materials traders are generally facing financial pressure, which also makes it afraid to store goods on a large scale.

For a large number of small and medium plastic raw materials traders, the upstream raw material suppliers have increased prices, and they are also forced to transmit price pressure to the downstream, which has also made the plastic industry chain hit.

Li Zhicheng, the head of a new Mstar Technology Ltd in Dongguan, introduced to reporters: "before, we are generally 90 days of money, now usually monthly, and sometimes need cash." Under such circumstances, many enterprises have to take small batch purchase mode to relieve financial pressure.

In addition, Li Zhicheng also noted that some downstream companies, under cost pressure, began to seek foreign suppliers, some of which were snatched by suppliers from overseas regions such as Southeast Asia.

However, Peng Hua also said that in the face of some downstream customers, plastic raw materials traders often lack bargaining power. Not long ago, Peng Hua received a notice from a large client asking for a 5% reduction in price. "We're in the middle, and the profit is smaller." Peng Hua said.

Expediting the development of high value-added products

In this round of rising prices of plastic raw materials, some enterprises have relatively small impact due to the layout in advance.

Ji Shuo's business involves both plastic raw materials trade and semi finished products. As early as a few years ago, Wang Yong realized the impact of price fluctuations on plastic raw materials traders, and resolutely decided to intensify research and development of high value-added products.

Wang Yong introduced to reporters that, for several years, it has been driven by technological innovation, deeply ploughing the fields of high molecular weight materials, and continuously developing high performance products. Now its products have been involved in the field of new energy and aerospace.

Because of the early layout of the previous years, when the price of plastic materials has risen sharply, it has a strong bargaining power to transfer the cost pressure to the downstream manufacturers.

Xiao Senlin, chairman of Guangdong's toy Limited by Share Ltd of the first generation of the first generation, introduced a large increase in raw materials and a shorter price rise period, which made many manufacturing enterprises pressure.

In the face of rising prices of raw materials, he appeared calm and calm. Xiao Senlin, as an old toy enterprise, has already been upgraded to a new generation of high-tech intelligent toy enterprises with its own brand from the initial OEM OEM production enterprises. When the price surges of raw materials come, the advantages of HA's products with high added value are revealed.