The first wave of raw material price increases in the beginning of the year is coming! Furniture,
home appliances, electronics, textiles, and tire industries are not spared.
There are many reasons behind the skyrocketing prices of raw materials, which involve many industries,
but each industry affects the city. The main reasons for the skyrocketing prices are as follows:
1. The COVID-19 has led to a decline in production in various industries;
2. Currency devaluation due to overpayment and overspending;
3. Increase in tax collection in various countries, etc.
In fact, the price increase of these materials has started in the second half of last year, but until today,
the price increase of raw materials has continued. For example, the price of our car headlights, which
are the main materials of aluminum, copper, lamp beads, and plastics (fan materials), has increased
by 50%-100%, and will increase.
The increase in raw materials has caused many companies and suppliers to be unable to bear it. Some
manufacturing companies in Guangdong that have been operating for 10 years have begun to close down.
Even some companies with relatively strong cost control have fallen into continuous losses. This is also
the most unusual large-scale price increase in recent years. While the price of raw materials is rising,
there is a serious shortage of goods. Most material manufacturers require cash delivery and still
cannot guarantee the supply.
For example, for our G8 headlights, due to the scarcity of some materials, the lamp beads are seriously
out of stock, and the delivery time of the headlights is extended. It takes 4 months to complete an order !
The continuous rise of raw materials has driven the cost to rise steadily, and the weekly price adjustment
is no exaggeration. In order to protect the interests of our partners,Our unipower have not raised prices for
a long time, and have been working hard to absorb the rising costs. Although the profit has been negligible,
we still believe that our customers will tide over this difficulty with us.
In short, before the COVID-19 is fully controlled, it is expected that the prices of raw materials and terminal
commodities will continue to rise in 2021, and it is recommended to make a purchase plan in advance.