Raw materials have gone up again! Who is driving the surge in raw material prices? Manufacturing costs are under pressure.
Who is driving the surge in raw material prices?
It is generally believed in the industry that this round of raw material price rise is mainly caused by the following reasons:
1. Due to the impact of overcapacity reduction, some raw material production capacity is insufficient, the gap between supply and demand is enlarged, and the supply shock leads to the price rise, mainly due to the price rise of raw materials of steel and other metal products;
2. As the environmental protection policy continues to be strengthened, the overall market supply is tight, which is expected to increase the price of raw materials;
3. China's ability to acquire global resources is still insufficient, for example, iron ore and other related industrial raw materials are imported from abroad.Affected by the epidemic, overseas major mines (iron ore, copper, etc.) have reduced production. With the gradual stabilization of the epidemic in China, market demand has begun to recover, leading to the situation that supply falls short of demand, and it is inevitable that the price of raw materials will rise.
Of course, when the epidemic is under control at home and abroad, the price of industrial raw materials will fall slowly. It is estimated that in 2021, the price of raw materials will show a trend of first high and then low.