Challenges & Opportunities under the Trend of Rising Prices of Raw Materials
May 19,2021 Eric Carson
You may have heard from your suppliers that the metal materials cost rise a lot in 2021, so the product price have to rise too. That is true, most materials cost rise a lot after January, 2021. Why their cost will rise? There are many factors and complicated, including the Global COVID-19 pandemic, Global currency inflation, decrease in the stock of non-ferrous metal resources and so on.
Under such a trend of rising price of raw materials, copper rise 65% aluminum rise 45% when comparing with last year’s price. What is the challenges and opportunities of our LED headlight industry?
Of course, the biggest challenges is to control the cost and quality, optimize the raw materials supply chain. We CARSON LED Headlight factory premised that we will not use the low quality materials as replacement. All materials quality will keep same as previous. Especially aluminum and cooper, they are the key materials and directly affect the cooling system and quality.
On the other side, this is also a big opportunity for us. The increase in the cost of raw materials will naturally eliminate some low-priced and low-quality products and factories. The low-priced product already have very little profit, now the cost increase, means the profit become less, or even no any profit. Nobody will do unprofitable product. So there will be less competitors in the market.
Overcome the challenges and catch the opportunities under such a trend of rising price of raw materials, we will win more market. CARSON will be always here offering the premium quality and latest car lighting products!