Various factors affect the price of products

Beginning at the beginning of this year, the global epidemic has eased, and various countries and industries have recovered on a large scale. The retail industry has recovered and the demand for products has increased. This year’s China’s foreign trade ceramic production orders have significantly increased compared with last year. Global product demand has increased significantly. 2021 will be an important year for the recovery of the world economy. But at the same time, ceramic production prices are showing a gradual upward trend under the influence of many factors. For a period of time in the future, the prices of bulk products will continue to rise. The main reason lies in the following aspects.

rmb usd

1. Exchange rate fluctuations. Due to the development of the US economic stimulus plan, the RMB exchange rate against the US dollar has continued to fluctuate. It has changed from 7 at the end of 2020 to 6.4, and will still show a downward trend in the future, which has also aggravated the instability of product prices and continued to rise.

cost

2. Production costs increase. In 2020, the global impact of the epidemic will slow down the extraction of ceramic raw materials. When the economy recovers in 2021, factory production is extremely hot, resulting in a substantial increase in the demand for raw materials, which also leads to more shortages of raw materials and further leads to raw material prices rise. Packaging prices have risen, and the newly issued “plastic ban” has further increased the demand for cardboard paper. This promotes the consumption of corrugated boxes to a certain extent. The release of the new version of the plastic limit order brings new material requirements, and paper is currently the fastest and most effective replacement material. The demand for paper further increased. At the same time, the Ministry of Ecology and Environment will no longer accept and approve applications for the import of solid waste. Starting from 2021, China will completely ban the import of solid waste (including paper). Because of the above factors, prices will rise further. At the same time, due to the impact of world economic inflation, labor costs have also increased significantly.

shipping

3. Shipping. Since the second half of last year, the global economy has tended to recover, and the demand for bulk commodities has rebounded. The market needs a large number of products to supplement the vacancies during the epidemic. This has led to tight container demand worldwide, an imbalance in the supply-demand relationship, and chaos in the global logistics supply chain. And reduced efficiency, leading to extensive delays in container liner schedules. Further promote the increase in shipping prices. And this situation will continue for a long time.