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To know more about Cosmetic materials price in China

As the upstream of cosmetics industry, the impact of soaring prices of raw materials on the downstream is self-evident. Recently, there are endless news about price rise. What is the final price? What are the reasons behind the price rise? When will it stop? The policy calls for rectification, but what criteria should be achieved? This is an inevitable stage for the standardization of the cosmetics market, but the market performance is more intense. It is expected that in the next two to three years, the market for the raw materials of cosmetics will experience a period of "pain".


According to Sophia Zhang, Sales manager of TNJ Chemical, " cosmetic materials price keep rising since from last April, and never stopped and has no sign of stop. I think with the more and more strict policy of environmental protection, it will not decrease in short time".

 

The most important reason is that this year, the central reason is that the government has intensified the inspection of environmental protection, and has directly shut down a lot of enterprises with excessive pollution, which leads to the decrease of supply and the rise in prices. As important Allantoin suppliers in China, TNJ Chemical already reduced the volume 1/3 since from last year.

 

In fact, it is not just the cosmetics industry that have been shut down for environmental protection. With the increasingly stringent environmental policy, many foreign raw materials can not be transported to the domestic market, which makes the market supply relationship more and more intense. TNJ Chemical wants to buy Succinic acid materials from Europe, but it is very hard situation now.

 

Many factories have some complaints on the shut-down. However, according to the point of view of the famous financial commentator Ye Tan: Although the rising price of raw materials has made you suspect everything, it is only the first step of the whole country's industrial upgrading. Environmental protection is only a representation. The real driving force behind it is industrial upgrading.