The raw material market soared

The rising cost of raw materials has promoted the general rise of commodity prices, the recovery of production in downstream industries has formed a tense situation of supply and demand, and the financial attributes of non-ferrous metals and some chemical products are prominent.

Coupled with the normalization of epidemic prevention, many logistics and transportation require high deposit and inspection, and the time cycle is lengthened, which will increase the cost of transporting raw materials. Finally, the intuitive feeling to users is that under the state of inflation, with the capital flow beginning to enter the manufacturing industry, the cost of raw materials shows a rapid upward trend.

Precautions for substantial increase of raw materials

It should be noted that with the rising price of raw materials, enterprises need to pay more funds to buy the same raw materials. For a long time, some small and medium-sized enterprises rely on bank loans to survive. The working capital in the company is insufficient. It is difficult to borrow from banks due to the lack of corporate reputation. Financial difficulties are the key factor leading to the tide of enterprise bankruptcy.

It should be noted that in the future, small and medium-sized enterprises will face the situation of unsalable products, because most small and medium-sized enterprises win the market by virtue of price advantage. However, after the price rise tide came, the prices of small and medium-sized enterprises increased significantly, and the cumulative maximum price rise reached 45%, while the price rise of large enterprises and foreign brands remained at about 10%.