Recently the following information is popular in China:
“Hebei stop, Beijing stop, Shandong stop, Henan stop, Shanxi stop, Beijing-Tianjin-Hebei comprehensive stop production, now it is that money can’t buy products. Iron roaring, aluminum calling, carton laughing, stainless steel jumping, polish shrieking, accessories roaring, the freight is also floating up, the cost of raw materials is highly fever, environmental protection join in the fun, price rise beyond our imagination and completely mess up! My God, do not let us offer concessions, you should be concerned about whether there are products!
Why！！！What’s wrong?!! I will explain for everyone:
1) Limit in production to control the pollution.
Since November 2016, many cities in China were heavily polluted in smog. To improve the environment, The environmental protection department had taken limit production control action in some industry field like steel, casting and cement, power and other enterprises, which lead to many raw material prices increase. There was Government regulation come out and stated that companies and plants in 21 cities in North of China would be stop production in the peak smog weather season, from 15th November to 15th March in 2016 and 2017.
2) Product prices rise and out of stock
Limited production results that raw materials’ supply is tight and prices continue to grow. By the end of January 2017, coking coal prices rise 200%, steel prices rise 30%, freight prices rise 33.6%, boxes and cartons package price also rise 20%. The market is even tense again after the Spring Festival in China, because government continued to limit production. Rising price in raw material and limit in production, many companies refused to accept new orders and the inventory was empty.
3. What does Dinsen Impex Corp do to deal with it?
As a professional supplier of cast iron pipes in China, we have actively provided our customers with effective solutions, and most customers avoid the loss of delay in delivery caused by limited production and price increases. Meanwhile, new production facility and more equipment was brought into manufacture to ensure the production is smooth.
1) Environmental protection facility
We brought in advanced technology and environmental friendly equipment and strictly control the production process of pollutants to meet the technical requirements by environmental protection departments and ensure the normal production. New environmentally friendly paint was found and improved in technology to make contributions to global environmental protection.
2) Improve production capacity
After Chinese New Year, New workshop and facility were set up and more professional and technical workers were employed. In the effective production time, we improve the daily production capacity of cast iron pipe and fittings further.
3) Make production schedule and inventory in advance
According to different customers and market demand, we formulate corresponding plans and schemes, together with the customers to research plan and arrange production increasing stock. So we ensure the delivery in time of the goods.
Through the stop and limit production situation, we will pay more attention to environmental protection. In future Dinsen will develop and produce more environmental friendly pipeline, taking the quicker response to market changes and effective solutions to ensure customers’ demand.
Post time: May-01-2016