Cold thinking on purchasing under the hottest chem

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Cold thinking on purchasing under the hot market in the chemical market

cold thinking on purchasing under the hot market in the chemical market

March 8, 2021

after the Spring Festival, the chemical market is extremely hot, and various articles analyzing price increases can be seen everywhere. Although my company stored a large amount of raw materials before the Spring Festival and took many measures to actively respond to the price rise after the Spring Festival, it is inevitable that this round of price rise did have a great impact on the production and operation of the company, and the vast majority of enterprises in the coating industry will face losses based on the current raw material prices. In March, as a purchaser, I calmly thought about the situation of subsequent raw material procurement

the speculation of chemical products is facing normalization

the global economic growth is weak

since the polypropylene started crazy speculation during the epidemic in 2020, the entire chemical market has been fully hyped up, and the stock market has entered the chemical spot market. Capital or upstream oligarchs have tasted the huge benefits brought by speculation, which will lead to the long-term existence of speculation in the follow-up chemical market

the integrity between the upstream and downstream of the supply chain was severely challenged

last week, there were various news on the market that upstream suppliers did not accept reservations, did not accept prepayments, broke the contract and refused to deliver. Some large enterprises have no bottom line in front of their interests, and the cost of default is low, resulting in heavy losses for some small and medium-sized traders. The basic principle of integrity to maintain transactions is severely challenged. There is mistrust between upstream and downstream, and the business rules established over the years cannot be maintained

the supplier base of plastic film is facing substantial adjustment

every sharp market fluctuation will have a great impact on the company's original supplier base, and the suppliers have to be dynamically adjusted, because some suppliers are dealt with due to upstream default, some suppliers exit the market due to poor management, and some suppliers are dismissed due to too strong performance

differentiation of raw material price trend procurement faces new challenges

after a round of hot and general rise, the price trend of raw materials will definitely be differentiated, the scarce raw materials will continue to rise, and some products with rising prices will be hit back to their original shape one after another. How to identify and judge the price trend of raw materials and avoid high-level takeover puts forward higher requirements for the ability of buyers, and the procurement work is more challenging

the price of pigments, fillers and additives faces a price rise if special accessories need to be added.

this round of price rise is driven by the upstream, which will be passed to most coating raw materials layer by layer, and will also bring inevitable price rise pressure to pigments, fillers and additives with relatively stable prices at present. In this situation, some suppliers will ask for price increases, but some suppliers will also raise prices by car. Because the prices of these products are relatively lack of transparency, how to distinguish also tests the working ability of buyers

turning danger into machine coating industry is still full of opportunities

the bullwhip effect in supply chain management tells us that any supply of magnodyn system design allows samples or components to be directly applied to sports, and the shortage of power supply will end in excess supply

in the past two decades of purchasing career, I have experienced many ups and downs. After continuously tracking and studying the price trend of many volatile raw materials, I came to a rule, which fully verified the above sentence. The law of price increase and profit buying: after the rapid rise in the price of coating raw materials in the short term, the supply surged due to the expansion of production in many ways and the new production capacity; The actual demand of downstream is significantly restrained and alternative schemes are frequently used; As a result, the imbalance between supply and demand has been reversed, the price has continued to fall, the market has been in a state of sluggish demand for a long time, and the price has been lower for a long time than before the price rise, so the buyer has benefited for a long time

the paint industry has achieved a golden development period of more than ten years after the 2008 crisis. As long as colleagues in the paint industry remain rational and overcome difficulties, they can also turn crisis into opportunity

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