Last updated: 6 Jul 2022 | 447 Views |
Many aluminium craftsmen have probably noticed that all aluminium strings are more expensive. The main reason is because global raw material prices are continuously increasing. Comparing April 2020 and April 2021, we found that raw material prices have risen by more than 60%. What is the reason for the rise in global raw material prices? New Sangthai Industry has got the answer.
- Firstly, developed countries (e.g., the United States) provided money to their citizen to remunerate for Covid-19 crisis. People spent on goods and services in a short period. Brands increased production to meet their demand. However, increasing production capacity required more raw materials, and of course aluminium elements, Aluminium was in demand, and prices had been increased.
- Secondly Covid-19 situation made people around the world stay home, so people ordered online products instead of going out. This resulted in insufficient containers and cargo transportation. Carriers has raised the freight (some routes more than four times higher), product’s price also need to be raised.
- Thirdly China has been serious about solving environmental problems. Many raw material production factories have been shut down for unqualified standard. Global raw material prices had increased demandingly.
Thailand is such a small market with no bargaining power. When global raw materials price had been increased, Thailand needs to buy them at a higher price, which effected on the cost of aluminum production.
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