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Company news about Raw material price increase are going to stop

Raw material price increase are going to stop


Latest company news about Raw material price increase are going to stop
Since this year, domestic commodity prices show a shocking upward trend, energy, metals, chemicals and other bulk commodity prices rose basically reached double-digit.
In this context, the State Council executive meeting held recently named commodity prices again, requiring "good market supply and stable prices. Improve and implement important raw material prices to respond to the program, a reasonable increase in domestic production, scientific organization reserves put, strengthen the key commodity market linkage supervision," releasing a strong policy signal that the country will continue to ensure that the supply of bulk commodities to stabilize prices.
Why is there a price increase? One of the reasons lies in the rising cost of raw materials - such as imported copper, iron and other raw materials, the average price of a significant increase of more than 40%, the price of crude oil also set a record for the same period in history the largest increase in the cost of raw materials to a large extent to promote the general price of commodities. Another important reason is that the global economy is accelerating recovery, especially China's economic start will show a good trend, the growth rate of product demand in the first quarter far exceeded the increase in raw material production and manufacturing capacity, stimulating the rise in commodity prices.
For the LED display application industry, the first to bear the brunt of the price hike is the upstream and midstream manufacturers. 2021 since the beginning of the global "lack of core tide" intensified, many chip factories around the world have announced that the third quarter of 2021 will again increase the foundry offer, up to 30%, the second half of a new round of chip panic. LED lighting major manufacturers are racking their brains to stock up on chips, but ultimately did not withstand the pressure, have announced price increases.
According to incomplete statistics, as of now there are more than 70 LED lighting-related enterprises issued a price increase letter, including Opple, Rays, bull, Buddha, Acme shares, Xinuo Fei, Woodland, Lazard, Jingfeng Mingyuan, must easy micro, Chau Ming Technology and other well-known brands in the industry, only in July there are more than fifteen LED lighting-related enterprises issued a price increase letter.
Party Central Committee, the State Council attaches great importance to the impact of rising raw material prices for the middle and lower reaches of the industry and small and medium-sized enterprises. The executive meeting of the State Council has repeatedly studied the issue of commodity prices rising too quickly, and the use of monetary policy tools such as downgrades, to further strengthen financial support for the real economy, especially small and medium-sized micro enterprises. July the relevant departments to complete two batches of national reserves of copper, aluminum and zinc put a total of 270,000 tons, the release of the country to carry out the supply of commodities to stabilize prices of positive policy signals, stabilizing market price expectations. Targeted placement also provides a window of opportunity for midstream and downstream processing and manufacturing enterprises to replenish their inventories, reducing the cost of raw materials for some enterprises.
In the supply and price stability "combination of fist" continued to force, in recent months the PPI rose significantly began to stabilize the trend. But from the next stage, with the recovery of the domestic economy, while the international commodity prices continue to rise, industrial commodity prices remain high will continue for some time. This also means that the industry chain in the downstream enterprises, especially small and medium-sized micro enterprises face pressure in the short term may be difficult to get effective relief.
Do not let commodity prices crush small and medium-sized micro enterprises, first of all, to continue to remove the "false fire". Do a solid job of commodity supply and price stability, and take measures to strengthen the two-way regulation of supply and demand, with a market-based approach to guide the supply chain upstream and downstream to stabilize the supply of raw materials and production and marketing support collaboration. Continuously increase the period of the spot market linkage supervision, crack down on price gouging, hoarding and other illegal and illegal price behavior, to maintain normal market order. Second, to help enterprises to strengthen the "vitality". Implementation of the established tax and fee reduction initiatives to curb arbitrary charges. On the basis of insisting not to engage in flooding, maintain the stability of monetary policy, enhance the effectiveness, and further strengthen financial support for the real economy, especially small and medium-sized micro enterprises, and promote a steady decline in comprehensive financing costs. Once again, the enterprise itself should also be strong "internal force", take active measures to reduce costs and increase efficiency to tide over the immediate difficulties, but also to turn pressure into motivation, accelerate the pace of innovation and transformation.
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