Recently, there are many factories complaining about the shortage issue of raw material and many distributors and wholesalers complaining that their products are facing shipping delay.
What happened? Recently, the central government of China has sent a large number of inspection teams into Shanghai and Guangdong to inspect air pollution.
To avoid further testing and potential fines, many factories in Foshan and Zhongshan reduce their production capacity and hide their polluted machines. Some factories even temporary close for weeks and ask their workers back until after the Chinese New Year. This cause severe delay in such a really busy season.
Some analysts suggest that this will lead to the rise of raw material price because of the reducing production. This will put pressure on supplier and they can do nothing but increase the price. However, the suppliers are not to be blamed because the macro-environment is out of our control.
Easylock is encountering packing material shortage which leads to possible shipping delay because of the pollution inspection. Take carton box for example, it's facing a severe shortage and the price have increased by at least 100% last month. We minimize the affect of material shortage issue by storing standard carton box and looking for different packing box suppliers all over China. We strive to offer stable price and continuously provide and develop top-quality plastic food containers to our customers.
Why Raw Material Prices are Increasing in China in Q4 of 2016?