Supply Chain woes continue as raw material cost raise in Asia.
Synthetic Resources Newsletter
Spring is here and there are strong signs that businesses are getting back to work with a huge uptick in business both here in the US as well as Overseas in Asia. In this newsletter our intention is to explore the continuing challenges affecting freight/transportation, a possible preview to inflation as part of of the market's recovery, and finally what drivers affects textile market today. Is it Crude oil price , Currency exchange, Transportation ? As always we welcome any feedback or areas of information you want to know more of.
US retailers signal no import let up through summer Bill Mongelluzzo, Senior Editor | Apr 07, 2021 5:03PM EDT
US retailers will not let up on their ordering binge this summer, projecting Wednesday that import volumes will remain at record or near-record levels through August. With the retail inventories-to-sales ratio near 30-year lows, retailers are scrambling just to replenish their inventories, let alone building stock to prepare for the busy back-to-school and holiday shopping seasons.
China’s factory prices hit a more than two-year high last month, data showed yesterday, highlighting the country’s strong recovery but feeding concerns that it could filter through to the global economy just as central banks battle to maintain ultra-loose monetary policies and low interest rates. Read More
From the above charts you can see year to year two key core drives impacting material cost increases. In 2017 to the end of 2018 you can see where oil price jumped and the Dollar Value dropped. This droved the only large increase since 2017.
For the benefit of our clients, from 2018 to 2020, we were able to bring cost down to benefiting our client. IN 2021 we are repeating the same cycle . Dollar continues to devaluate . Oil price recovered and climbing, freight has increased two to three times compared to last year. So, what's next ?? We anticipate possible push to higher price. As always , we will continue to keep you informed. (More to come)