Since the second half of 2020, my country's industrial raw materials have been increasing prices on a large scale, and the increase has been even more pronounced since the beginning of the year.

The reason is to start with the 2020 epidemic. In 2020, when the epidemic broke out, people's home-based prevention of the epidemic would reduce the corresponding expenditure. Factories such as demand and the epidemic would cease production, and production capacity would be severely reduced. In the second half of the year, the epidemic eased, especially the rapid rebound of consumer demand in the domestic market, so that the entire market was in a state of imbalance in short supply, and prices would naturally rise. On the other hand, in order to alleviate the huge pressure on the economies of various countries caused by the epidemic, many countries have proposed loose monetary policies.

bike parking rack production | chinabikerack

In order to hedge against the impact of the decline in foreign exchange, commodity traders had to increase prices to ensure export profits, which is also a factor in the rise in raw material prices. In addition, rising costs are also a factor in the price increase of raw materials, such as labor costs, manufacturing costs, and transportation costs.For example, in recent years, the country has been emphasizing the protection of the ecological environment and promoting structural adjustment. The general raw material industry involves the procurement and use of environmental protection equipment, which will increase corporate investment to a certain extent.

Since the global outbreak of the epidemic in 2020, except for China's strong control, other countries are basically still affected by the epidemic. Under the impact of the epidemic, the production of many companies has been affected, such as In the automotive chip industry, global chip suppliers are experiencing shortages due to the epidemic. CCTV Finance twice reported the shortage of automotive chips in January and February 2021.

The American Bernstein Research Company also predicts that in 2021 The global shortage of automotive chips will cause the loss of up to 4.5 million car production, which is equivalent to nearly 5% of the global annual car production. Therefore, the supply of products in the market is in short supply, which will inevitably lead to an increase in product prices.

Despite the harsh environment,chinabikerack strive to maintain the interests of customers in the global soaring environment of raw materials.Check more information at www.chinabikerack.com !

double deck bike rack