The policy of dual controls total
energy consumption and energy intensity brings shortage of electricity in most
provinces of China.
Factories are required to only
work three days per week or even only once in a week in some area with the
limited usage of electricity.
Chemical Synthesis needs
contentious production in 24hours, so the chemical factory had to stop under
this policy in Sep.
Raw material price rising,
shortage of production, less stock and unclear future result to massive order
cancellation, sharply and suddenly price rising and delay of shipment.
Multinational companies agree to
accept new higher price to lock down the limited stock in the market under the
term of Force major. Which supports the trends of price rising.
WHAT IS HAPPENING NOW
Winter is coming in China.
Green heating plan will cover 26
provinces and cities, which covers the main chemical production area.
The plan mainly controls the air
pollution.
It is expected to limit the
capacity turnover.
WHAT WILL HAPPEN
Chinese domestic market and North
Hemisphere market will start.
The coming demands will support
the rising trends in a certain extent
Next February will see winter
Olympic in China, which makes large production resume impossible.
SUGGESTION
All decisions should be based on
local market acceptance and own strength for example, cash flow
Try to accept new price to lock
down some stock in hand if you can so that you can keep goods in hand to realize
the profit for tough future.
Again, please do not hesitate to
cancel the order if you cannot afford it.
As your partner in China, Oasis will work together with you so
that we can try to get a better solution
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