Why do prices keep rising

Since the second half of last year, a crisis of rising raw material prices caused by excess liquidity and supply side structural changes has swept across the country. After the Spring Festival, with the constant increase of various forces, the price rising tide and the evil atmosphere are blazing day by day, and a devastating disaster is coming on the stage in an extremely shocking way.
I’ve been working as a factory for more than ten years, but I don’t have such a rise in my impression. It’s not a rise in one category, it’s a rise in most categories. It’s not a rise of 3 or 5 points, but a rise of 10% or 20% Ms. Hu, who runs a communications electronics company in Bao’an, Shenzhen, told caijing.com.
Since June last year, domestic commodities have continued to rise. According to CCTV financial report: Copper rose 38%, paper rose 50%, plastic rose 35%, aluminum rose 37%, iron rose 30%, glass rose 30%, zinc alloy rose 48%, stainless steel rose 45%, IC rose 100%. At the end of February, the price of raw materials completely out of control, with 20%, 30% of the range of crazy jump, there are special paper is a one-time jump 3000 RMB / ton!
The crazy rise in prices of plastics, textile raw materials, copper, energy, electronic components, industrial base paper and other industrial raw materials has completely disrupted the production plans of terminal brands, and many production lines have been forced to press the pause button.
Runaway price rise of upstream raw materials
Since the construction started after the Spring Festival, in less than 10 days, all walks of life have experienced unprecedented price increases, involving dozens of fields and thousands of enterprises.
Chemical raw materials soaring
After the festival, with the rising global oil prices, a variety of chemical raw materials have jumped. According to the incomplete statistics of plastics in the world, at present, the price increase in the domestic chemical industry has become overwhelming. The price of some products has increased by more than 10000 yuan / ton year-on-year, with a price increase of more than 153%.
Plastics: going crazy
After coming back from the holiday, the plastic ring seems to have started the popular screen mode: “readjust 4000!” “Explosion 150%”, “skyrocketing” and “setting a new high”. Large factories often expose information about price increase and price increase notice, so it is difficult to stop the “rising sound”. Recently, engineering plastics enterprises have also issued price adjustment announcements, including DuPont, SK, South Asia plastics, BASF, Songyuan group, Changchun chemical and other enterprises, with different price increases.
Industrial base paper: unprecedented price increase
Since the second half of last year, corrugated paper, cardboard, white cardboard, coated paper and other industrial base paper have continued to rise under the strong impetus of upstream paper mills. After the Spring Festival, paper mills dance with other raw material manufacturers, and prices begin to jump. The price of special paper generally increased by 1000 yuan / ton, and individual paper even increased by 3000 yuan / ton at one time.
The global confidence in the economy has obviously recovered. In this case, the demand for raw materials will further increase, the contradiction between supply and demand is expected to increase, and the price of raw materials may remain high in the near future.

Post time: Mar-06-2021