Why the price of raw materials rising 20-40% or more in 2021？

Let‘s see how much raw materials have risen. According to official data,

Copper rose 38%,

Plastics rose 35 percent,

Aluminum rose 37%.

Iron rose 30%.

Glass rose 30%.

The new alloy rose 48%.

Stainless steel rose 45%.

What impact will the surge of these raw materials have on the industry and manufacturing? What impact will it have on the general public? Who is behind the rise in control? There is only one place in the world that can set off such a big financial storm.

What is the root cause behind the rise in raw materials? Industry insiders believe that there are four main reasons for the rise in steel prices:

① The global mismatch of resource supply has promoted the rise of raw material prices;

② The demand side of steel is relatively stable, maintaining the basic stability of steel;

③ The manufacturing industry has a relatively high outlook, boosting the marginal demand for steel;

④ This year, China has put forward relevant policies to reduce output. Driven by the market expectation policy, the steel supply will shrink to a certain extent.

The rising volume and price of steel products also led to the hot steel trade market. The orders of some steel trade companies doubled, and the transaction throughput of some steel trade markets even reached the highest in history.

Since the global outbreak of the epidemic in 2020, in addition to China‘s strong control, other countries are basically still under the influence of the epidemic. Under the influence of the epidemic, the production of many enterprises has been affected, such as the automotive electronic chip industry. Affected by the epidemic, global chip suppliers have ushered in a shortage wave, and the epidemic has been fully controlled, It can be predicted that the prices of raw materials and terminal commodities will continue to rise in 2021. At the same time, people‘s income is declining due to the epidemic. Therefore, we must learn financial planning to avoid hating less when money comes!

PS: how is your business in 2021?