Soaring Cost of Synthetic Leather Products

Recently, synthetic leather from all major markets understand, synthetic leather dealer price increases since late last year after another successful conduct of the overall price increase. And, from the river through the bridge of Wenzhou Synthetic Leather market understanding, synthetic leather product price increases are still in full swing after the sale scenario, ordinary synthetic leather such as: mirror series, embossed cowboy series and the end of adhesive and other varieties in between 21 24 dollars special synthetic leather, such as cold at minus 15 , and to maintain the 32 yuan, price hikes in the range of 0.5 1 per foot range. According to market a person in charge of stores, most recently to purchase a lot of people every day, and each purchase a large quantity of all came in the river through the bridge market customers a one time purchase of 10,000 to foot the frequent occurrence of synthetic leather.

In recent years, domestic production of synthetic leather production increased year by year, the market competition is also growing in response to the fierce market competition, the synthetic leather manufacturers compete for market orders, once stuck in the quagmire of vicious competition among enterprises to bargain with each other, even also appear below cost sales, production status of jerry building. In such circumstances, although the synthetic leather upper has shown a rising trend in prices of raw materials, synthetic leather products, but price increases have been “difficult birth”, so that many small and medium domestic synthetic leather factory has been painfully struggling to survive in the cracks.And similar to last September’s joint price adjustment, the overall price increase of synthetic leather market is tough introduction, reasons, the following points:
Raise raw material prices soaring cost of synthetic leather products.

Synthetic leather upper pulp prices have been from the beginning of the year two small price increase, the total price increase rate of 500. In the first half ago, the main raw material of pure MDI which has always been in short supply status, as the foreign large companies Taiduo MDI concentrated in 4,5 month maintenance, reducing the China’s export volume, full Fuhe Yantai million Chinese production, Ye can not satisfy the strong Guonei needs. Short supply, increasing demand in March caused traders to constantly improve the price of pure MDI, followed 10,000 Chinese in April listing 24,300 yuan ton pulp prices flew the area soared to 27000 28000 yuan, the hands of traders reluctant sellers of goods in some areas prices reach 3 million mark.

At the same time, continued high raw materials other major correction. AA from 06 07 years, prices have been living in the high 07’s AA 3,4 month spot market prices have been highest in the 20,000 yuan ton; April 2007 BDO bulk water prices in the 21500 23000 or more mainstream, the mainstream over the same period last year Price (16500 17100 yuan ton) have great gains, or more than 30%, reflecting lower pulp industry, purchasing 21,500 yuan ton price of BDO production of pulp has been difficult to make a profit; DMF is slightly higher than same period last year . DMF hovering in the 6,000 last year, up to 6300, although this year’s offer but did not have Yindie below 6600 prices in 6600 6900 in East China yuan ton.Raise the prices of raw materials all the way up the cost of synthetic leather, this year’s 3,4 month, synthetic leather market has not internalized the cost of upgrading the status of competition in the market, the only overall price increase once again brewing.

By anti dumping wind, synthetic leather footwear in fashion and growing market.China last year the EU set anti dumping duty on leather shoes since, in order to avoid the high tax burden on importers to adjust procurement strategy, procurement of goods mostly to other varieties of fabric shoes. Shift the direction of many European orders will be interested in turning non leather footwear, synthetic leather upper footwear opportunity to broaden the sales channels. While many domestic enterprises have changed their shoes export policy, the synthetic leather as the main export products, the EU anti dumping policy has fueled the domestic shoe market demand for PU leather, the increase in sales has brought the price of synthetic leather products up.

However, prices did not bring up the profit of synthetic leather products, energy and various raw materials prices by more than the market price of synthetic leather “carefully” improved.Late last year, synthetic leather products prices rose 8%, but profits fell 5%. But still there are always new operators (small businesses) have emerged, and drive down the price to seize the market with low prices, profit margins continue to shrink.Therefore, the synthetic leather market overall price increase needed to improve the market overall profitability.

Synthetic leather footwear design in the style favored by the advantages of Beishou business.With the ever changing fashion trends, turnover, more and more consumers begin full color models, prices are more favorable more concerned about synthetic leather footwear, particularly shoes, because of its popularity and rate, manufacturers and more choice PU leather high cost of raw materials for production. At the same time many of the physical properties of synthetic leather has superior characteristics of natural leather, which is native of Wenzhou shoe enterprises tend to one of the reasons synthetic leather. Increasing demand for synthetic leather product price increases have made basic.

In summary, late in the synthetic leather market, although the overall price increase is a general trend, but we can see that the main reason is the rising price of raw materials than synthetic leather market, degree of internal digestible, while the surplus of the domestic synthetic leather market production capacity makes the price of synthetic leather products to overall price increases only way there. The synthetic leather industry, while facing the other series, for example, technological innovation, safety, environmental protection and appreciation of the renminbi and other issues also shows the beginning, the domestic market is still in the throes of synthetic leather in the struggle, not only raise the price can be solved of.

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