Views: 45 Author: Site Editor Publish Time: 2021-06-17 Origin: Site Inquire
Hi Everyone, this is Rachel from Anyway floor, the Chinese manufacturer of spc floor and vinyl floor for more than 16 years.
I hear a lot of complaints from customers in this week that why your price is so high? I can buy it in local market at this price... how to do business now?
However, I can say that our price is moderate price, not the cheapest, not the highest. The rising price is caused by the rising raw material and containers shortage.
It is well known that the all factories are confronting soaring steel and iron prices as production picks up after Spring Festival holidays. In consequence, the PP material, PVC Powder, Cotton and paper price surged by 7-15% per cent during January 2021.Lot of material prices may set record high as this year.
The worse thing is that the raw material price begin another rising from May. Take our PVC Powder as a example, 9285 CNY/ton on 7th, May, 9500CN/ton on 12th, May, and today is 9985CNY/ton. It already rising another 7.5% in short 2 weeks.
During the past 5 months, most factory already run out of the PVC Powder and it is no longer possible for suppliers to fully absorb the effects as continue to rising. The more important is that suppliers won’t stock this material price at this high point. The sale representative could only quote the price based on uncertain raw material and only can confirm the final price when they receive the deposit.
Except the rising raw material price, Chinese manufacturers still face the dropping USD to RMB exchange rate.
Here a news from FOX BUSINESS that President Biden announced a financial assistance to put into $1.9 trillion dollars. Except the rising raw material price, Chinese manufacturers still face the dropping USD to RMB exchange rate.
There is no other option than to increase the price of products and solutions. The focus should remain on delivering values to and serving customers across the world.
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