|
The business of J&Y is not delivering raw materials to foreign customers. It is not our kind of business. We do supply raw material, but only in limited quantities, to fill containers. However, we do coordinate with our suppliers to buy raw materials together to be able to buy a larger volume and get a better price. For our customers, we consider it very important to be open about raw material pricing. If there are any raw materials for which you would like to receive regular updates, please contact us.
We provide free information for visitors of the website and customers of J&Y. On many sites, information about the material price in China is offered, however, usually it is a paid service. For J&Y providing the raw material price in China is a part of our service. We collect this information anyway, and there is no reason that we should not disclose the information. The use for ourselves to always have a competitive price available, and it will allow us to quote our customers for repeat orders even without discussing it with our suppliers. When J&Y accepts order, we place orders for raw materials ourselves. We have over 75 suppliers, and our purchase quantity is higher than for each individual supplier. The raw material price in China information is daily updated, and we take advantage of our position as local purchase and manufacturing company in China. The information is directly obtained from the suppliers of the raw materials, best price is used in the overview. Information in tables is forwarded to our customers.
News articles about material price in China
The China Post
2010-06 HANOI -- Rising costs are making life increasingly difficult for Vietnam's textile, wood and plastic-making enterprises. Read more here
J&Y
2010-02 Steel mills in China have announced to keep stainless stee l prices flat for a period of 2 weeks covering Chinese new year.
Cisa
2010-01 Rising raw material prices will push up production costs and support higher steel prices in China this year, according to the China Iron & Steel Assn (Cisa). Beijing may try to push through resource tax reforms this year, which steelmakers fear could lead to higher domestic raw materials prices. Check the overview regurarly, we update daily
Reuters
BEIJING, Jan 22 (Reuters) - Rising raw material costs along with the recovering economies of the United States and Europe will provide "strong support" for steel prices in China in 2010, the country's steel industry body said on Friday. Read more ..
General Trends for the raw material price in China
The price of raw materials in China is not free form political influences. Like in most countries with a high demand for raw materials, price fluctuations in material price in China seem to be influenced by the country government. In China, the government does not disclose its objectives, or announce price changes before they occur. In China, the government has a 2-way policy to influence the material price. The local market price and the export price can be influenced separately. This has happened often in the 2008/2009 and now again in 2010. The Chinese government is protecting its own materials supply. In a country so large and with such high growth rate, a balance between the use for the domestic market and the use for export is essential. Predicting the raw material price in China is difficult, however, not impossible. China is a member of the WTO, and although protectionism is still possible, the world market price does have a strong influence in the setting of the material price in China.
Material price in China, local use
The Chinese economy is growing. No matter if there is a financial crisis, Asian crisis, natural disasters or sanctions, the Chinese economy grows fast. To prevent overheating the economy, the raw material price in China is often adjusted by the government. A price raise to drop the growth rate, a price drop to balance the influence of economic stress, local and abroad. The government policy in China is always focused on harmony. This means in reality that the government will do anything to prevent social unrest. Economic growth is important to prevent problems. Even when the government is as powerful as in China, imbalances need to be prevented as much as possible. Taxation, fuel pricing and raw material prices are important tools. In the last years we have seen the government struggle to maintain a healthy growth rate. All major tools to influence the consumer price index have been used. The material price in China has been important to curb real estate development, however, it backfired because real estate prices went up very quick. In the last months, we do not see much major price fluctuation due to government ruling. We do see a steady rise in prices, due to local demand.
Material price in China, export
Export is very important for China. The financial crisis in 2008/2009 has influenced the export dramatically. Not following the government statistics, we decided to talk with 4 of the major 10 export companies in Jiangsu/Zhejiang and Shanghai provinces. The results confirmed our own estimation, that at least a 50% drop in exported volume has hit manufacturers very hard. The government has tried hard to improve the competitiveness of the export dependent manufacturers by increasing the returned VAT at export. Until this moment the VAT refund is about at its maximum.
|