May 17, 2024

Sichuan stop price increase for many downstream companies

Recently, a plastics product manufacturer in Sichuan issued a price increase notice on its website, stating that “Since the prices of plastic raw materials and auxiliary materials have risen sharply in the recent period, all products of the company have been increased by 3% on the basis of the original price”.
Affected by the superposition of multiple factors, the prices of domestic energy, chemical, agricultural, and other means of production have risen sharply recently. "The price is crazy" and "the highest increase in history." Researchers using the above-mentioned means of production data for a long time use such words.
The price of production materials due to multiple factors has risen sharply The price of production materials such as coal, PVC, calcium carbide, ethylene, and steel has risen sharply recently. Taking coal as an example, on November 8, the price of 5800 kcal Datong high-grade coal in major domestic coal transit ports in Qinhuangdao port rose to 820~830 yuan/ton, up 25.1% year-on-year; the price of 5500 kcal Shanxi high-grade coal was 770 yuan. ~780 yuan/ton, up 24.1% year-on-year. Compared with the end of October, the current price of rebar is generally 140 yuan / ton to 210 yuan / ton.
“U.S. loose monetary policy, rising crude oil prices, seasonal energy shortages and other factors together cause the current price of production materials to increase.” Affected by energy-saving emission reduction policies, resulting in domestic diesel shortage, in order to ease the oil shortage, refining companies will ethylene production line The change to diesel line led to a decrease in the output of chemical products and the price of the product rose.
Downstream enterprises increase their prices to prevent losses The rise in raw materials directly impacts downstream companies. “If it is not in July this year that a batch of raw materials has been advanced, the company has already begun to increase prices.” Yesterday, a plastic product manufacturer located in Chengdu Jiujiang Industrial Park posted a price increase notice on its website. The notice said that the company has been unable to bear the operating pressure brought about by the sharp rise in raw materials. In view of this situation, after the company’s research and decision, the prices of products for line pipe, pipe fittings, drainage pipes, pipe fittings, PPR pipes, pipe fittings, etc. Increase 3% on the basis of the original price. The company's main raw material for the production of PVC, in August the price per ton in the 7,000 yuan / ton, November 9 price of 8,500 yuan / ton, recently rose to nearly 10,000 yuan / ton.
The current price is the highest level in more than 20 years. The person in charge of the company said that the 3% increase was decided by the company for a long time. "The current amplitude adjustment is not in place. If the price of PVC continues to rise, we have to be forced to increase prices again." ”
However, compared with companies in the above industries, the thermal power industry should not even want to raise prices even if it loses money. A part of the head of a Sichuan-China medium-sized power company said that due to the increase in the price of thermal coal, the company’s power generation costs have increased sharply, but the price of electricity is regulated by the state, so even a loss of production has to be curbed.

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