China’s factories decry surge in RAW material prices as they CUT production!!!
“The cost of casting materials has far exceeded the company’s gross profit, and it has reached the point where we can no longer afford any loss"
Despite China's first Quarter Record GDP jumps 18.3%, manufacturers are scaling back the productions. Many dare not proceed with normal mass production.
“It means that, the more we produce, the more we lose,” he said. “Each tonne we produce is equivalent to a loss of 1,500 yuan.”
“Rising prices of raw materials – metals, plastic casings, copper to make [home appliance] chips – have eroded the profits of all upstream and downstream enterprises in our entire industry,” said Zheng Leqiang, who runs a kitchen-appliances factory in Zhongshan, Guangdong.
[Source](https://www.scmp.com/economy/china-economy/article/3134768/chinas-factories-decry-surge-raw-material-prices-they-cut)
https://www.reddit.com/r/StockMarket/comments/nmmwbb/chinas_factories_decry_surge_in_raw_material/
