The oil price is lower and lower, and resin material prices are also declining. So whether the price of plastic products is declining?
According to today’s New York Times article said that China’s plastics manufacturers have slashed the price of the raw material procurement mostly positive contribution to the consumer. Of-course, domestic export markets are also included. The report cites a plastic container manufacturer in Wuxi Redhot Industries Company’s comment, saying the domestic market competition, coupled with long-term overcapacity, product manufacturers trying to compete on price.
In other words, the price of Chinese exports after gaining a greater share of the global market, while imported raw materials prices have fallen, so the formation of a new high trade surplus.
The domestic market is also expressed. Fuzhou Evening News November 27 reported that a number of supermarkets in Fuzhou and comprehensive plastics store launch promotional activities, many plastic basin, crisper and other products price is only about two-thirds in the past. The report authors interviewed a plastic factory in Fuzhou, the person in charge, who said the cost of material is the largest plastic products, accounting for 70% to 85% of the proportion of the total cost. While labor costs accounting for 5% to 20%, the cost of design and development aspects of accounting for 10% to 30%.
The plastics industry said that this year almost all the raw material spot prices are lower. With oil prices all the way down, the plastic procurement costs are down by 13%. The maximum fine spot price declines and terephthalic reached four percent, polyethylene prices fell by 17.6 percent. In effect, the total cost has also been a 5 % to 20 % reduction on different ranges.
However, a key factor in the cost of raw material prices are not all plastic products.