A sudden price increase affects the entire industry, and the price increase affects the entire industry
Abstract: Industry insiders point out that rising raw material costs are closely related to unstable commodity prices. The continuous rise in international crude oil has affected the rise in raw materials. “The rise in raw materials has a lot to do with international oil. At present, raw materials have basically increased by 5% to 10%. Affected by this, the prices of our products have also risen.” Wu Xiaomeng, general manager of the fabric department of Jinjiang Wanxinglong Dyeing and Weaving Industrial Co., Ltd. told Reporter, currently we are mainly producing products for the autumn and winter of 2017, among which nylon
Key words:
Industry insiders pointed out that the rising cost of raw materials is closely related to the instability of commodity prices.
The continuous rise in international crude oil has affected the rise in raw materials. “The rise in raw materials has a lot to do with international oil. At present, raw materials have basically increased by 5% to 10%. Affected by this, the prices of our products have also risen.” Wu Xiaomeng, general manager of the fabric department of Jinjiang Wanxinglong Dyeing and Weaving Industrial Co., Ltd. told Reporters, currently we are mainly producing products for the autumn and winter of 2017, among which major materials such as nylon yarn, polyester yarn, chemical fiber fabrics, and knitted fabrics are all affected.
Chemical fibers are directly related to petroleum. Therefore, the prices of yarn, nylon, and polyester products have been rising recently, but the current impact on their companies is small. “The price of raw materials has increased by 1,000~ per ton. 2,000 pieces, each yard of cloth increased by 2 cents, which is less than 1% of the total cost. Compared with raw materials, enterprises are more affected by environmental protection, overcapacity, labor costs and other factors, ranging between 5% and 10%.” Wu Zhihui It is pointed out that when the above factors are added together, the burden on enterprises will be very heavy, and everyone will be more sensitive to this round of rising raw material prices.
In addition, some industry insiders pointed out that at 11:30 noon on October 17, local time in Germany, a violent explosion occurred at BASF, a chemical company located in Ludwigshafen am Rhein. This major incident also touched people’s minds. Rise in raw material prices. As a large chemical company, the situation of BASF, the source company, will affect downstream companies. According to BASF’s announcement, as the supply of raw materials is still interrupted, the steam cracking unit is still shut down, and about 20 other units are shut down or partially operating. In this regard, industry insiders said that the shutdown of raw material equipment will definitely lead to a rise in raw material prices.
“Cost disaster” is undoubtedly a disaster for the entire textile industry. The key point of its impact lies in whether it can be transmitted to end consumers. Industry insiders believe that it is unrealistic for end consumers to completely “pay” for this part of the price, because consumer demand for clothing can be elastic, and consumers can choose to buy or not buy, buy expensive or cheap.
When consumer demand is variable but raw material price increases are immutable, the entire industrial chain sandwiched in the middle becomes a sandwich layer. They share weal and woe and bear this catastrophe together, and in order to protect themselves, they will play games with each other. Under increasing cost pressure, the step of refined management has become a new channel for textile and garment enterprises to seek breakthrough and improvement.
——Professional functional fabric supply and application comprehensive service provider. The company has strong scientific and technological research and development capabilities, advanced production and inspection methods, and has self-operated import and export rights. It is also an ISO9001-2008 and ISO4001-2004 certified enterprise. The main products include: anti-static series, high temperature resistant and fireproof series, flame retardant series, oil and water repellent and three-proof series, acid and alkali resistant series, ordinary clothing fabrics and accessories, etc. Involving metallurgy, fire protection, petroleum, chemical industry, machinery, medical and other industries. Decades of experienceattention, market-oriented, innovation-driven, and Quality strives for survival and development strives for growth. Technology provides you with comprehensive solutions and complete products and services.
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Industry insiders pointed out that the rising cost of raw materials is closely related to the instability of commodity prices.
The continuous rise in international crude oil has affected the rise in raw materials. “The rise in raw materials has a lot to do with international oil. At present, raw materials have basically increased by 5% to 10%. Affected by this, the prices of our products have also risen.” Wu Xiaomeng, general manager of the fabric department of Jinjiang Wanxinglong Dyeing and Weaving Industrial Co., Ltd. told Reporter, currently we are mainly producing products for the autumn and winter of 2017.Among them, major materials such as nylon yarn, polyester yarn, chemical fiber fabrics, and knitted fabrics are all affected.
Chemical fibers are directly related to petroleum. Therefore, the prices of yarn, nylon, and polyester products have been rising recently, but the current impact on their companies is small. “The price of raw materials has increased by 1,000~ per ton. 2,000 pieces, each yard of cloth increased by 2 cents, which is less than 1% of the total cost. Compared with raw materials, enterprises are more affected by environmental protection, overcapacity, labor costs and other factors, ranging between 5% and 10%.” Wu Zhihui It is pointed out that when the above factors are added together, the burden on enterprises will be very heavy, and everyone will be more sensitive to this round of rising raw material prices.
In addition, some industry insiders pointed out that at 11:30 noon on October 17, local time in Germany, a violent explosion occurred at BASF, a chemical company located in Ludwigshafen am Rhein. This major incident also touched people’s minds. Rise in raw material prices. As a large chemical company, the situation of BASF, the source company, will affect downstream companies. According to BASF’s announcement, as the supply of raw materials is still interrupted, the steam cracking unit is still shut down, and about 20 other units are shut down or partially operating. In this regard, industry insiders said that the shutdown of raw material equipment will definitely lead to a rise in raw material prices.
“Cost disaster” is undoubtedly a disaster for the entire textile industry. The key point of its impact lies in whether it can be transmitted to end consumers. Industry insiders believe that it is unrealistic for end consumers to completely “pay” for this part of the price, because consumer demand for clothing can be elastic, and consumers can choose to buy or not buy, buy expensive or cheap.
When consumer demand is variable but raw material price increases are immutable, the entire industrial chain sandwiched in the middle becomes a sandwich layer. They share weal and woe and bear this catastrophe together, and in order to protect themselves, they will play games with each other. Under increasing cost pressure, the step of refined management has become a new channel for textile and garment enterprises to seek breakthrough and improvement.
——Professional functional fabric supply and application comprehensive service provider. The company has strong scientific and technological research and development capabilities, advanced production and inspection methods, and has self-operated import and export rights. It is also an ISO9001-2008 and ISO4001-2004 certified enterprise. The main products include: anti-static series, high temperature resistant and fireproof series, flame retardant series, oil and water repellent and three-proof series, acid and alkali resistant series, ordinary clothing fabrics and accessories, etc. Involving metallurgy, fire protection, petroleum, chemical industry, machinery, medical and other industries. Decades of experienceattention, market-oriented, innovation-driven, and Quality strives for survival and development strives for growth. Technology provides you with comprehensive solutions and complete products and services.
AAA
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