In March (2021), we noted that the raw material prices of some commodities (silicone, some papers & cartons, some batteries...) went up a lot. And some analysts predict a multi-year increase in raw material prices. Bloomberg came up with an interesting article on this topic -- When Does a Commodities Boom Turn Into a Supercycle?: A surge in commodity prices has Wall Street banks gearing up for the arrival of what may be a new supercycle -- an extended period during which demand drives … [Read more...]
Rising prices in China: 5 solutions for importers
The RMB rate has been going up steadily against the USD (see below), and labor costs have been increasing even faster. When you add the raises in shipping rates and in certain raw materials prices, prices have often increased by more than 10% a year. What can importers do to avoid getting their margins squeezed? Here are my 5 tips. 1. Become less sensitive to cost increases Can you find a more profitable niche, where your products can be sold for a higher price? For example, if you import … [Read more...]