End-Product Companies Are Raising Prices Across the Board — Carton Makers Should Stop Absorbing Costs

Since the end of September, all walks of life have seen multiple rounds of raw material price hikes. Whether to tough out the costs or raise prices in step with the trend has become a major issue troubling enterprises. Judging from the current situation, from condiments to food, from ceramics to furniture... the wave of price increases has gradually spread through all industries. Carton plants that have not yet fully passed on costs should stop holding out!

Listed food companies raise prices by 8%-18%

Affected by rising costs of raw materials, packaging and auxiliary materials, and energy, food companies have announced price increases one after another. As early as late October, Chacha Food announced that, starting from October 22, it would adjust the ex-factory prices of its sunflower seed series products as well as pumpkin seeds and Xiaoxiang watermelon seeds, with increases ranging from 8% to 18% across categories.

Entering November, the number of food companies announcing price increases increased markedly. Recently, Fujian Anjoy Foods and Haixin Foods announced that they would reduce promotional policies or raise distributor prices for some frozen surimi products, frozen dishes and frozen rice and noodle products, with increases of 3%-10%, effective on November 1 and November 3 respectively.

The wave of price increases for oil, salt, soy sauce and vinegar arrives

According to incomplete statistics, within about one month, more than 10 listed companies in the food industry have announced product price increases, ranging from 3% to 35%, including essential foods for people's daily life such as oil, salt, soy sauce and vinegar. A netizen joked: "In today's life, cooking a meal costs a lot more than before."

It is reported that as early as October 13, Haitian Flavouring and Food announced that it would adjust the ex-factory prices of some products such as soy sauce, oyster sauce and sauces, with adjustments to main products ranging from 3% to 7%, and the new prices took effect on October 25. Subsequently, listed companies such as Jiajia Food, Hengshun Vinegar Industry and Xuetian Salt Industry also issued price increase announcements.

On November 3, the board secretary of Xuetian Salt Industry revealed that the ex-factory prices of Xuetian small-packaged table salt had recently been raised successively by within 10%, and industrial salt prices had risen by 30%-50%. On November 16, Jiajia Food raised the ex-factory prices of Jiajia soy sauce, oyster sauce, cooking wine, chicken essence and vinegar series products by 3%-7%. On November 20, Hengshun Vinegar Industry raised the prices of some products by 5%-15%...

Price hikes in the home furnishing industry draw CCTV's attention

Besides food companies, the wave of price increases in other industries continues. In early November, CCTV Finance reported that due to rising energy prices, the cost of ceramic products had already increased by more than 10%, even without counting chemical raw materials, cartons and labor. According to the author's understanding, since early October, ceramic enterprises in Fujian, Guangdong and other places have successively raised prices.

In fact, the home furnishing industry, including ceramics, has seen relatively frequent price increases recently. According to CCTV Finance, around the National Day holiday, a number of leading home furnishing companies including Oppein Home and Dongpeng Holdings announced price adjustments, covering whole-house customization, ceramic tiles, waterproof coatings, lighting and other fields, setting off a new round of price increases in the home furnishing industry.

As raw material prices continue to rise, many home furnishing manufacturers have seen costs surge, and they can only passively raise prices in line with the market. According to CCTV Finance, a home furnishing enterprise in Guangzhou revealed that across the entire home furnishing industry, including sofas, furniture, bathroom products and ceramic tiles, prices have risen by about 5% to 10% to varying degrees, with some even adjusting prices twice in a week.

Carton plants should stop toughing out the costs!

While end-user enterprises have been raising prices one after another, the paper packaging industry, although it has already carried out several rounds of price increases, has still not fully passed on cost pressure at some carton plants, which are struggling to absorb costs. But costs only rise and never fall, with little prospect of a decrease.

On November 3, Nine Dragons Paper issued a new price increase letter, with its major bases raising prices by 100 yuan/tonne starting from November 16. This will be Nine Dragons Paper's second round of price increases in November and the seventh since the end of September. After the rise in base paper prices, paperboard prices are bound to follow quickly, and carton plants' raw material costs will rise again.

Under the current market conditions, base paper prices keep rising, environmental pressure remains, and major end-user enterprises have already set out on the path of price increases. Carton plants that have not yet fully passed on costs should stop toughing out the costs!

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-378626.html