Since August 2016, China Central Government reinforce the pollution control and monitoring, which is related to many chemical enterperises, plastics and minery manufactueres in China. Many relative enterprises were forced to stop to do some improvements on the production facilities and equipments, upgrading the technologyies, or reduce the production capacities. It causes the relative materials out of supply and its prices continous increasing. By Febeuary 2017, the carbon black prices have been increased over 50% from the lowest point of 2016, moreover, the supply is out of market.
Now the pressure of the prices rising and out of stock are transferring to masterbatch factory, especially black masterbatch and white masterbatch. They have to rise their selling prices to their end customers, which are facing the strong refusual from the market. On one hand, the production costs continously increasing, cash-flow pressure rising, on the other hand, it is very difficult to rise the masterbatch prices to the markets. Masterbatch enterprises are in a historic dilemma.
Which direction should we follow? Market will give out the answer sooner or later!
What we could do at this moment is to try to do our efforts to keep business moving and sustainable!
Let 's share hands together to overcome the difficult time!
