Q4 Cost Trends
There are a few notable points to draw your attention to:
The US dollar continues to lose buying power against Chinese and Taiwanese currencies in Q4 as shown in the downward lines present in the first two figures. Currently, it is losing about 5-7% in value which will directly impact the cost of materials.
Oil prices steadily rise throughout Q4, further contributing to increasing freight costs, and also a sign of markets coming back as demands are returning at a fast pace.
Raw material prices continue to stabilize, and certain raw materials such as EPVC (Vinyl) are skyrocketing due to pandemic driven needs. Selectively, we will see prices increase based on demand.
For these reasons, we anticipate continued pressures for prices to move in the upward trend throughout Q4. Should you have any questions, please do not hesitate to connect with us.
Disclaimer: This post was prepared for informational purposes only based on data from Google Finance and is not intended to be used as a complete source of information, and data can vary slightly due to rapidly changing market conditions.