Electricity restrictions Oct 05, 2021

There is nothing hotter than electricity restrictions these days, and the media is full of different opinions.

The cost of generating electricity in China is high, but the price of the products produced has not gone up much. If the epidemic in Southeast Asia subsides, it could eventually lead to overcapacity, hoarding of goods, and the possible closure of small and medium-sized manufacturing companies in droves.

To force "high input, high energy consumption, high emissions" enterprises to complete industrial upgrading, go out of the comfort zone, to avoid falling into crisis, the Chinese government introduced dual control of environmental policies.

In addition, the winter season is coming, the state to ensure the supply of coal, this is a matter of livelihood, secondly, can slow down the pace of China's exports, shipping costs rise, is too much export, demand is too strong, the number of exports slowed down after the restriction of electricity, shipping companies will certainly reduce prices to attract sources of goods after less.

Product price determinants depend on the cost, the cost of enterprises mainly includes raw materials, labor, financing costs, and the loss, then there is the conflict between supply and demand. Before the market has formed a foreign demand for China bigger than the supply, why instead the price of Chinese products can not raise.

Market prices and costs are rising in tandem, profits are still the initial ratio, for the foreign customers, even if Chinese products do not increase prices, the high price of shipping costs has caused the end of the purchase cost price increases, so they will do their best to suppress the purchase price in China. The number of Chinese processing plants is very large, and there is no uniform standard for production and prices. When importing raw materials, they tend to compete by raising prices. When exporting products, they will lower the price again to get orders. If it continues, it will form an undesirable vicious competition. If you can lower the price of raw materials while increasing the price of goods, it is possible to resume production.

E-pack Technology Co., Ltd. is an exporting company working with manufacturers to produce bespoke machinery and meet the packing needs of various customers around the world. It was deriving from a automatic packaging machine factory with a history of more than twenty years. 

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