EdisonReport received the following letter from a mid-size manufacturer in China:
Dear Friend,
I’m writing this email to pass the current situation about raw materials cost increasing. Recently we received price increasing notices from our suppliers more frequently, some suppliers already advise that they noticed us to raise their prices upto 15%. Some suppliers even stopped accepting new orders because they don’t know how much cost will be increased from the date they get the order to the date they produce, means the more they produce the more they may lose. We tried to negotiate with the suppliers to get a fair cost increase percentage, meanwhile let’s hope and pray the cost increasing can be slower or went down little bit in next step.
– PMMA: keep increasing since last year, price again be raised by our supplier 15% this week;
– Aluminum Copper/Metal: cost increased 12~18% recently;
– Paper: our supplier increased our price 8% last week and this week another 8%;
– Hard to buy: because of increasing trend, people don’t stock any more, tend to be more difficult to buy materials with cash even at high cost;
As you know we are great partners, always tried very hard to work out and sacrifice our margin to keep lowering our prices to support you. In the past months even though the cost increased we still be able to offer reasonable price for you. Facing this difficult situation, to be frank we don’t know how long we can stay the same prices, but we will of course try our best. We really hope someone could come out to stop this round of cost increasing so that we could relieve little bit.
We will keep you updated closely, if the cost down we are both happy, if unlucky still going up probably we may have no choice but sorry to raise our prices in order to survive. We appreciate your understanding and we are optimistic that our partnership will be stepped forward with our joint efforts.
In the meanwhile, if you have any pending orders, we strongly recommend you place the order now asap.
Again, thank you for your kind understanding!
Thanks and have a nice day!