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How can Taizhou Plastic products enterprises cope with the pain caused by the "reshuffle"

for some people, Taizhou's popularity is not as high as that of Hangzhou, Ningbo and other cities, but they may not know that half of the plastic products used in their families may come from Taizhou, which is called "the kingdom of plastic products and the hometown of molds". Today, Taizhou's plastic industry has also gone global, becoming one of the important processing bases of global plastic products and one of the important global mold manufacturing bases

for plastic products enterprises, the cost of raw materials plays a key role in all costs. It is understood that after July this year, the plastic raw material market once again launched a ferocious rise. Many enterprises believe that this rise in raw material prices will be the beginning of the "reshuffle" of the industry. So, how can Taizhou Plastic products enterprises not be "washed" out

Plastic raw material "golden nine" has a strong rise

polypropylene is a main raw material of plastic products. Its price rose step by step in August this year, and in September, it showed a momentum of "indomitable", and insiders said it "rose to doubt life". According to statistics, the price of polypropylene per ton rose from 7900 yuan in early July to 9500 yuan, with a cumulative increase of 1600 yuan per ton, more than 30% over the same period last year

"after a round of price increases at the end of last year, plastic raw materials experienced a long correction in the first half of this year, and the current market can be seen as bottoming out and rebounding. This wave just caught up with the peak production season of golden nine silver ten, and many factories are waiting for raw materials to be put into the pot, so the impact is relatively large." The method is to use a certain load to press the specified indenter into the tested material Taizhou Plastic chemical market. Mr. Cheng, who sells raw materials, told that this rise in plastic raw materials involves many kinds and affects a wide range of enterprises, "not only domestic plastic products, but also some industrial plastic product enterprises have been complaining."

plastic raw materials are tight and enter the seller's market

according to many plastic raw material suppliers, recently, while the price of plastic raw materials has risen, there is also a shortage of goods

"recently, plastic raw materials have entered the seller's market, and traders and producers are living a relatively moist life. Not only the price has been raised, but also there may not be goods." Mr. Cheng said that in the raw material market of our city, there is always a mentality of "chasing the rise". As soon as the signs of the rise in raw materials came out, the finished product companies of all parties increased their raw material procurement. "Large enterprises increased their stock and increased their inventory, and small enterprises adopted high-frequency procurement, so that the supply of goods was tightened."

however, the situation of raw materials entering the seller's market is not very easy for many finished product enterprises

"I'm an enterprise that makes plastic products such as garbage cans. 80% of the products are made of plastic raw materials. Now the price of plastic raw materials has increased by 30%, and the company is under great cost pressure." Taogongxin, the relevant person in charge of Luqiao fengjiang Tegu Plastic Co., Ltd., said that the orders in August were more than those in May and June, but the profits fell instead. "What's more annoying is that now it's the raw material market that the final say. If it's not for cash, traders usually talk more in the assembly, and in a few days, the raw material price rises again."

small and medium-sized enterprises are in a dilemma whether to rise or not

many insiders said that according to the truth, raw materials have risen, and merchants follow the trend to raise prices is the easiest way to absorb costs. However, this is not the case

"on the whole, small and medium-sized enterprises do not have the advantages of R & D, technology, process and so on. Whether they compete with large enterprises or with each other, they compete more or compete with each other for lower production costs." In the interview, most plastic enterprises and dealers said that if they easily follow the trend to increase prices, it means that they take the initiative to give up their competitive advantage in price; If we insist on not raising prices, we will face the embarrassing situation of getting the market but losing profits

learned that another deep-seated reason why small and medium-sized enterprises dare not easily raise prices is that many small and medium-sized enterprises need to solve the problem of insufficient liquidity through financial institutions or private financing. In this case, the sharp rise in the prices of various raw materials will occupy more cash flow of small and medium-sized enterprises. Once the enterprise raises the price, it may increase the capital return cycle due to the difficulty of product sales, which will then affect the relatively stable capital chain of the enterprise

according to the staff of Taizhou Plastic Industry Association, large enterprises have incomparable capital flows compared with small and medium-sized enterprises, and their ability to absorb the rising prices of raw materials is much stronger than small and medium-sized enterprises. Small and medium-sized enterprises that rely on low cost for living space can carry out powerful data analysis and processing; Adopting electro-hydraulic proportional microcomputer control system and microcomputer automatic control, the microcomputer display industry dare not transfer all the raw material costs to products even if the price rises

How can Taizhou enterprises not be "washed out"?

How can Taizhou enterprises face the rising price tide? After the visit, it was found that many enterprises in Taizhou have adopted measures such as technological innovation and management upgrading to improve the added value of products and strictly control costs

"in the past, when the price of raw materials increased, our small and medium-sized enterprises' relatively reasonable practice was to raise the price of products by a small margin and in multiple batches to test the response of all parties in the market. At the same time, we used the way of reducing profits to offset the remaining production costs. However, now our enterprises should not only consider the cost of products, but also consider the process and other issues." Tao Gongxin said, "for example, PC (polycarbonate) is more expensive. We can use other cheaper materials to improve to the same performance, so as to solve the cost pressure for customers."

Zhang Weixing, the relevant person in charge of Taizhou Weixing management industry, told that the impact of this round of rise in plastic raw materials on enterprises is difficult to estimate, and the prices of some raw materials have even increased by more than 50%, "at this time, the low-cost competitive market is useless, and low prices mean a loss, or a decline in quality." Zhang Weixing told them that at this time, their enterprises would rather choose to take less projects and develop some new materials, "for example, now the PP-R plastic pipe of Weixing is recognized by the market even if the price is adjusted, because its quality is recognized."

the staff of Taizhou Plastic Industry Association said that there had been a "collective boom" in raw materials before, followed by "reshuffle" of the industry again and again. He believes that if you don't want to be the one who is "shuffled" out, it is crucial to do a good job in the future layout. Although the above data are somewhat different from star's production, enterprises either transform in time or make more efforts to actively increase the research and development of new products, new technologies and new processes, and tap the added value of products. Otherwise, passively coping with the rise of raw materials is likely to lead enterprises into a "dead end". "Even if you avoid this' reshuffle ', you can't escape the next time." He said

many insiders also said that the price mechanism should not be based solely on the rise and fall of raw materials. If enterprises have strong technical strength in modified plastics, they can improve the added value of products by improving the flame retardancy, strength, impact resistance, toughness and other properties of products, and have the right to negotiate prices, so as to flexibly respond to market changes

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