Provide free LOGO design and packaging design support!

Home > News > Content
The Raw Material of Lighting Industry Keeps An Increase in Price
- Sep 04, 2017 -

Recently The price of basic raw materials like PVC, glass, plastic, aluminum, iron, cartons, stainless steel, freight has already risen by around 40%. In addition to the crazy increasing of these basic raw material prices, the price of PCB, semiconductor components keeps increasing as well. In 2017, the Chinese manufacturing industry is suffering an increase in price from all industry supply-chains, as well as the severe supply shortage, which brought a negative result that China's manufacturing industry is facing enormous cost pressures. How to deal with this challenge? It’s urgent for businesses to come out effective strategies.


In recent years, with labor costs rising, economic growth slowing down,  although being a powerful manufacturing country, China is facing terrible industry crisis. Due to the lack of innovation capacity, the weakness of the ecosystem, the lack of market research, as well as the incomplete of supply chain and other reasons, most of the manufacturing enterprises can only be forced to survive by lowering price cost and developing assembly workshop, which unfortunately results in enormous pressure.

Undoubtedly there are complicated reasons behind such price increase and supply shortage.

Take a look at the basic material price, copper price shows a rapid rise since November, SECC price also surged since November, so does the price of copper, aluminum, and steel, etc.

In addition to the increase in raw material costs, freight fee also increases. The traffic control department has already severely restricted the freight vehicle, the logistics cost has risen by almost 35%, thus, the rising cost of transportation will also affect the purchasing cost.

Corresponding to the sharp rise in raw material prices, the devaluation of the RMB gets worse, manufacturing companies that purchase by dollars have to face higher cost.

In addition, the price increase process of raw material further leads to out of stock, as well as there is somebody storing materials for other purposes, making the market supply tenser.

The trend of RMB devaluation and raw material costs can not be changed within a short period of time and lighting suppliers would definitely suffer certain cost pressure, MILANLUX also have to make corresponding adjustments on the price of products under current busness according to the maket status.