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SAP rose 50%, rose 60%, non-woven material prices... Will bleed health products industry?
Add time:2018/3/31
Recently, the most popular circle of friends is rising, rising and rising.

Someone said, "a little boss is worried." the boss is very big at night. Big boss is gnawing teeth and sleeps hard every night. This is our 2016!

And this is caused by the industry's "boom".

Recently, with the increase of raw material price, logistics cost and human cost, the enterprises of Wei products have begun to complain, because the rising raw material prices have increased their cost burden. Whether the product has been increased or not has also become a hot topic for manufacturers. There are some small and medium enterprises put forward prices, large manufacturers to adjust pricing strategy is cautious.

What caused this round of raw material to rise?

In September this year, the PPI (Industrial producer price index), which grew for four and a half years, was finally reversed, which marks the official opening of the overall price rise in China's industrial field. In fact, from the beginning of the year, large raw materials such as coal, iron ore and papermaking began to rise, and they spread to the whole industry in a few months.

In September 19th, the state industry and information department and the State Energy Bureau announced a joint announcement of the completion of the elimination of backward production capacity and excess capacity target in 2015. After assessment, 16 industries, such as paper making, electric power, coal and iron making, completed the goal of eliminating backward and surplus production targets in 2015, and reduced the price of coal, steel, paper and other commodities at the same time. Some products even have supply tension.

The factors that cause the rise of raw materials must be more than that, but the price increase is an indisputable fact. From the macro level, the elimination of backward production capacity and excess capacity, the standardization of logistics transportation, the renovation of environmental protection and other final purposes, is not not to make industrial production into a healthy development road, but the current pain, perhaps is the process of breaking cocoon into butterflies, through the harvest more broad sky is not possible.

The cost is increased by raw materials, labor costs, freight rates and policies.

The raw materials that greatly affect the health industry are mainly polymer absorbent resin (SAP), fluffy pulp and nonwoven fabrics, all of which are facing substantial price rise this year. According to one lover of industry, the price of a ton of non-woven fabric in June is up to 60%, and many enterprises can not buy the raw material, which has caused the original production plan to be disrupted.

  In the face of the bitterness of the manufacturer, the material manufacturer is also bitter, "the raw material PP of non-woven fabric is also in a crazy price rise, and there is a broken stock, which seriously affects production, and no goods are supplied to the manufactures at all." A non-woven industry practitioner said.

Zhejiang satellite new Mstar Technology Ltd chairman Hong Xiquan told Bo Wei Xiaoban: "since August, the main raw materials of SAP are in a big price rise, to the current raw materials have been more than 10000 yuan, so the price of SAP can only be up."

"At the beginning of October, cartons and other paper packaging material of the highest price rose 100%." Lin Bin, the chairman of the Limited by Share Ltd, told the editor that after the National Day holiday, they received five consecutive suppliers' notice of price increase.

The rise of logistics costs also brings pressure to the industry. After the implementation of the regulations on the management of the driving road for the ultra limited transportation vehicles since September 21st this year, the logistics industry began to raise the charge standards, which led to the rising cost of commodity logistics. In addition, in recent years, the cost of manpower has also been rising, and the production of health products is facing more stress.

The cost pressure of the raw materials and the price of logistics and human resources has increased greatly. In recent years, the brand of diapers has increased fiercely, and the gross profit between enterprises is only about 10%~15%.

Increase in production cost

But the price of sales will be adjusted properly

The cost of production is rising. Is the company's product also rising?

Let's see how the companies deal with it.

Daddy baby Limited by Share Ltd chairman Lin Bin: under the big environment, the unwoven fabric, packing bag, bottom film, carton, polymer and other urine pants are all rising, so the price of product should be up 4%-5%. But because the price adjustment of international companies will be later than the domestic companies, it will be a great pressure for domestic companies. Because almost all domestic companies face a process to increase the process, and material will produce out of stock.

Tan Xujun, chairman of Hunan Kang Cheng nursing products Co., Ltd.: from the current situation of raw material price increase, the production cost will increase by at least 5%. For positioning low and medium end products, it is likely to simply eat the old profits. Therefore, the biggest pressure is the low end category of the retail price in 1.5-2.0 yuan, the first price is the low price category of our e-commerce channel, which may reduce the promotion of these ways to change the price, and the price of high price will not change too much.

Hong Xiquan, chairman of Zhejiang satellite new Mstar Technology Ltd: at present, acrylic acid is above 10 thousand, showing an upward trend. The cost price of SAP manufacturers has reached 12000 per ton, the market price has been more than 9000 in the previous period, and it has been adjusted to about 11500 recently, and the market is watching. According to the current cost, the price of SAP will be 13000 or more reasonable.

How to look at this rise in price?

It may be a shuffle for the industry

Daddy baby Limited by Share Ltd chairman Lin Bin: the price tide is a big challenge for small and medium manufacturers, and it is better for their own factories and brands. For OEM brand enterprises, whether we can survive this "cold winter" can only be seen by luck. If raw materials continue to rise, a large number of enterprises will go bankrupt, and a large number of brands will be shuffled out.

Tan Xujun, chairman of Hunan Kang Cheng nursing supplies Co., Ltd., is a great pressure for some low-end products which are not differentiated and with high quality. This wave may eliminate many of these enterprises which are not efficient in quality management, production operation management and internal management. And this phase of elimination depends on how long this wave of rising tide will last. If it is too long, there will be some small brands that will gradually withdraw from three to six months.

In addition, some of the product quality control, brand positioning is more high-end, including the efficiency of internal management, the cost control is to compare the lean management of the brand enterprises, may have a greater initiative in the price rise. Because the proper price adjustment is much less difficult for them to control the retail price of the terminal, and the price is much less difficult, then I think it will not have a big impact on such brands.

In the short run, it may only impact some weaker and inferior brands. But for a long time, if the cycle is too long, it does not exclude that some assets are not very high, and some Brand Company with high debt and high leverage may also be very big pressure. (the above is from the Chinese baby child network)