Plastic packaging: Spring is coming, can the market be expected?

In the spring of this year, the entire procurement group is suffering from an anxiety. On the one hand, suppliers are raising prices, and on the other hand, buyers are not getting goods. Usually, the industry believes that purchasing is Party A, and it should be the most moisturizing. In fact, this year's purchasing party is very painful. The first keyword in the procurement industry in 2016 was “price increase”. For large companies, suppliers are raising prices almost every month, and some even rise once every ten days.

The main reason for the price increase in the whole industry can be divided into four points:

First, the operating rate in many northern regions has declined, and the supply of plastic packaging is tight;

Second, due to the weather, the amount of raw materials recovered fell, and prices continued to remain high;

Third, factors such as rising coal prices and rising freight rates are still being digested;

Fourth, downstream demand surged from October to November last year, and e-commerce and other industries boosted demand for packaging paper.

To sum up, the situation of rising costs and imbalance between supply and demand is exaggerated, and most companies purchase raw materials in large quantities to ensure customer orders, resulting in a continuous increase in raw material prices, which is counterproductive to plastic packaging prices.

The main reason for the shortage is because the Spring Festival has just passed, and a large number of factories have been shut down for maintenance, resulting in a contradiction in downstream supply. Every day, different manufacturers announce price increases, and it is no longer possible to count the frequency of concentrated price increases.

How to solve this series of problems? Jiuzhi Plastics Network believes that for the procurement party, the most important thing is to guarantee supply, the most important thing is to meet the delivery period. Therefore, it should be proposed to exchange prices. Even when it is very out of stock, you can get it at a higher price. So this time does not require too much entanglement price. In addition, due to the large changes in the marketing needs of the peak season and off-season companies, procurement should balance the procurement needs in the off-season and peak seasons. Moreover, the price increase of materials is too fast, and it is more profitable not to sell products. At this time, the company's marketing department should actively reduce demand, make strategic adjustments, and reduce production and sales.