The price of raw materials has risen rapidly since August 2021, exceeding a 100 percent trend. Furthermore, all suppliers are unable to supply on a regular basis.
Hundreds of thousands of new illnesses are reported every day as the Covid-19 pandemic sweeps the globe. The revival of the economy will not proceed as predicted. It results in a mismatch between supply and demand, as well as widespread inflation. Thus, our adhesive industry cannot avoid this difficulty also.
The difficulty of upstream supplier
There are several factors that have resulted in a rapid increase in price and a shortage of raw materials.
1. The price of Metallic Silicide has grown by more than 150 percent, resulting in a direct cost increase.
2. The Chinese government's "Dual Control of Energy Consumption" policy, which has an impact on material manufacturing capacity.
The difficulty of downstream supplier
The downstream silicone sealant maker has been under a lot of pressure to keep expenses and pricing under control because the price of raw materials has been rising dramatically. Our client's influence has been weakened as a result of the pricing and supply shortfall. It's a problem we're having in this atmosphere.
Furthermore, many silicone sealant manufacturers are seeking cost-cutting opportunities. For example, lowering the silicone proportion, filling the sealant in half tubes, or using recycled raw materials are all options. Some Silicone sealant manufacturers employed the methods outlined above to reduce costs, resulting in a more competitive price. The price of silicone sealants fluctuates drastically on the market over time. At the same time, the quality difference will be wider.
Haohong adheres to quality first, and we strive to meet our customers' needs while also advancing the adhesives business.
16 Sets Fully Automated Silicone Sealant Production Line, that ensures silicone sealant quality stability and product issue reduction.
Our product is standardized, and we never utilize recycled raw materials. We also never reduce the silicone proportion and the sealant in the tube. For each batch, we have tight criteria for raw material purchase and testing, manufacture, and test sealant.
Haohong’s objectives: Excellent sealants, sealing us together.