Why are chemical raw materials rising so fast?
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This year the two sessions put forward six major economic issues that are closely related to the chemical industry. my country's economy has gradually stabilized amid a slow decline. The chemical industry has gradually evolved from rapid development. Enterprises have paid more attention to quality and service.
According to market news, raw material prices and transportation costs continue to push some products to a climax, and manufacturers are under greater cost pressure. With the impact of tight spot factors, these products are still rising. In addition, due to the impact of environmental protection policies, manufacturers have been hindered, and downstream companies have experienced shortages of raw materials one after another. These four points may be the cause of the price increase.
1. The raw materials are rising wildly: the rise of raw materials has increased the cost of manufacturers, and manufacturers can only maintain profit margins through price increases.
2. Tighter environmental protection policies: The Ministry of Environmental Protection is implementing the most powerful air control action so far, which is another measure following the “environmental protection cyclone” that started at the end of last year. The shutdown of heavy polluting enterprises by environmental protection inspectors is expected to reduce supply and push up prices of raw materials and other materials.
3. International giants raise prices
4. Increase in logistics costs: my country has also recently released the "Annual Development Report on China's Hazardous Chemicals Logistics Industry". In the future, environmental protection and safety upgrades will bring new changes to hazardous chemical logistics, and the development of enterprises will be further scaled and intensive. The issuance of a series of environmental protection and safety regulations and documents has become a hard indicator for the entry threshold and operating permits of hazardous chemicals warehousing enterprises. Green logistics will be the ultimate goal of the development of the hazardous chemicals logistics industry.
In summary, the continued price increase of some chemical products in my country this year is inseparable from the four major factors of upstream raw materials, environmental protection, price hikes by international giants, and logistics. Coupled with the recovery of the downstream industry market, the market is about to enter the peak sales season. Therefore, the future of my country's chemical market Prices will continue to rise.
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