For some time, in the role of multiple factors, the domestic field of industrial raw materials ushered in a wave of rapid price surge, steel, aluminum, paper, plastic, glass and other raw materials rise one, brought huge impact to the downstream plant. The price surge in Dongguan related industries affect the geometry? Dongguan factory how to actively respond to the new crisis in the timing of the cost pressure?

“A month ago, we received from the supplier price letter every day, the total cost of individual products therefore increased 5%-8%, want to give orders to mention the price, foreign customers said they did not accept the price!” yesterday, Dongguan Buddha EVA Technology Co. company boss Yong Ching told reporters so describe this round of plastic “price tide” on the company’s impact.

Due to the superposition of oil prices, coal logistics freight rise, multiple factors such as devaluation, relative to the beginning or lows of the year, plastic raw material prices have risen sharply this year, October is the rapid shot, even a doubling of prices rose more than 30%.
Among them, as a large number of commercial enterprises in the middle of Dongguan, plastic manufacturers have earned pots full bowl full, while the downstream plastic products enterprises, such as toys, gifts and other factories, then feel no small cost pressures. The difference is that, take the high-end line, the production of high value-added business, the ability to bear relatively strong.

Market performance: part of the price of raw materials doubled
In the famous Dongguan plastics industry chain services business group headquarters, deputy general manager of the company operations management department Lai Boning showed the trend chart of plastic spot since the beginning of this year to the reporter. Reporters saw in the previous two years after the downturn, PE plastic prices rose from 7000 yuan per ton in the beginning, to October this year, a breakthrough million mark, currently hovering at 9600 yuan, up about 4 into. “The more violent is PVC, the price rose about 150%, futures prices have doubled”.
The headquarters is located in Southern China City Zhangmutou plastic well-known plastic trading platform general manager Yong party plastics made miracle also disclosed to reporters, plastic prices since October this year rose particularly badly, such as ABS, PP and PVC for more than a month rose two or three. Dang Yong said, because the domestic plastic raw material from almost half of imports, therefore, since the beginning of this year, the continued depreciation of the RMB is also caused by the rising cost of plastic. As an international commodity market, Chinese plastic products had experienced a trough, so also in compensatory growth. In addition, some petrochemical manufacturers and traders to “understanding” to increase the price, and the cover plate futures market speculation exacerbated price rises.

In fact, this round of plastic prices is the role of multiple factors superimposed. In addition to the above reasons, Boning Lai also said that coal prices in the first half of the “black line” rise, slow recovery in oil prices, also led to most of the coal chemical raw materials and rising domestic petrochemical raw materials; rectifying and standardizing the logistics industry, the logistics costs increased by more than 30% and so on, factors are also rising prices.
Intermediate traders: to make money market open

Dongguan has been an important trading center for the plastic area of Southern China, Zhangmutou, Changping and other places have a large number of traders gathered in plastic. Reporters found that this year’s plastic traders can be described as opening the money market, can have a good year, the original stock suddenly turned into a golden knots, Wu Wu re look, and so began to be popular in the industry. “Now, many companies have begun to sell, stockpile, a true reflection of the mentality of the market.” Lai Boning said.

“For the plastic trade companies, the overall profitability of this year should be considerable. Our company plastic factory prices generally rose 30%, especially hard plastic, the most obvious price increases.” Li Juan, manager of Dongguan Heng Xuda plastic trade Co., Ltd., who is engaged in the import and sale of plastic, said that the company’s profits increased by at least 20% this year.
Dongguan Leixin plastic materials Co. Ltd mainly do is ABS material, customers are mainly air conditioners, refrigerators and other household appliances, and modified plastic factory. The company manager Wang Siyun said, this year ABS raw material prices rising rapidly, about 10000 yuan from the beginning to now, rose to 14000 yuan, the profit space is very large, the entire ABS plastic in short supply in the state. “This rise is the largest increase since 2009, the longest duration, especially since September, rubber prices have a great impact on the industry”.
Factory: downstream costs soared too much

In Dongguan, a large number of pillar industries, plastic products occupy a considerable share. This round of price increases, to the downstream of the Dongguan plant to bring a considerable impact, especially in toys, craft gifts and other industries. Dongguan, a large Hong Kong toy manufacturers responsible person told reporters that the price of plastic has caused a 12% rise in the cost of enterprises, which brings great pressure to the enterprise.

We are very concerned about the price, the association opened several times to explore, a lot of vice president of the unit, the member companies are tucao.” Dongguan, a large number of small and medium-sized foreign trade enterprises, the association of industry and trade will be president Yong Chengxiang told reporters. To have the long and big orders for foreign trade enterprises, because the orders were signed by the node to calculate the cycle, often for months, so the raw material prices especially let them eat less.
Yong Chengxiang runs a Buddha named EVA.