The government strengthened macro-control the cost of raw materials

The impact of rising raw material prices

Li Xingqian, director of the foreign trade department of the Ministry of Commerce, said at a press conference of the State Council on July 22th that since the beginning of this year, difficulties such as rising raw material prices, poor shipping logistics, large exchange rate fluctuations and rising labor costs have led to rising operating costs of foreign trade enterprises and squeezed profit space. Some foreign trade enterprises "It’s so difficult to take orders" and "increase production without increasing profits", Small and medium-sized foreign trade enterprises are more affected.

Reasons for rising raw material prices

In terms of the rise of raw material prices, the analysis shows that the international transmission of prices is the main reason, and the rapid increase of domestic and foreign demand further intensifies the momentum of price rise, which brings great pressure to production enterprises and foreign trade enterprises. The Ministry of Commerce said that it would closely track and monitor the price trend of bulk commodities with local departments, promote import diversification, build stable foreign trade channels for bulk commodities, and the prices of some bulk commodities have fallen.

Solutions to rising raw material prices

The Ministry of Commerce has been closely following the practical difficulties faced by foreign trade enterprises. On the basis of in-depth analysis, research and judgment, we will further improve the trade policy toolbox, optimize the business environment, reduce enterprise costs, and support various market players, especially small, medium-sized and micro foreign trade enterprises, to stabilize production and develop healthily.

According to the deployment of the executive meeting of the State Council on ensuring the supply and price stability of bulk commodities, in order to alleviate the pressure on the cost of raw materials and give full play to the regulatory role of the reserve market, the State Food and materials reserve bureau released the second batch of national reserves of copper (30000 tons), aluminum (90000 tons) and zinc (50000 tons) on July 29, totaling 170000 tons. In the near future, the State Food and material reserve bureau will continue to carry out follow-up investment according to the market supply and demand and price trend.