Crazy!!! Raw Materials Are Skyrocketing

Electric Motor industry increased price

Recently, the prices of copper, plastics, aluminum and stainless steel have continued to rise.

Copper prices rose by 40% last week, and continue to rise this week. On November 30, domestic copper prices rose sharply again to 57610 RMB/ton.

Since April, domestic silicon steel sheets have risen by 26-31%, aluminum parts have risen by 38-43%, enameled wires have skyrocketed by 44-58%, and magnetic steel has soared by 42-51.5%. Behind the crazy price increases, what happened to this industry? 

Affected by the increase in raw material, a new round of price increases for motors has come again. Many domestic motor companies have issued price increase letters. From December 1st, prices of multiple product series will be increased by about 5-8%.


Multiple factors boost the price of copper, silicon steel, and motors

On the whole, cost pressure and tight output are the catalysts for copper, and multiple factors boost the price of copper, silicon steel, and motors.

Affected by the epidemic and international trade relations 2020, the output of copper and silicon steel on the market has been tight. For iron and aluminum, there is also a tight supply situation.

Affected by environmental protection and maintenance, the operating rate of enterprises remained at 65% to 70%. In October, domestic large steel and other enterprises basically stopped getting orders. 

According to industry analysts, the northern region has entered the heating season and the pressure on environmental protection has increased, which will have an impact on the operating rate of steel and other industries. Under the background of the higher operating rate of the downstream motor industry and the urgent demand for replenishment of steel , The prices of steel, copper and aluminum are expected to continue to rise.

Logistics is crazy! Shipping costs have skyrocketed 3 times!

After the northern hemisphere entered winter, the second wave of epidemics that scientists have been worried about has indeed returned. At present, Europe and the United States have encountered a large-scale counterattack against the epidemic. According to incomplete statistics, there are currently at least 13 European countries including Germany, France, Ireland, Italy, Spain, Czech Republic, Belgium, United Kingdom (England), Austria, Greece, the Netherlands, and Poland. A “lock down” was announced.


As the peak season for foreign consumption hits, shipping and air freight prices have skyrocketed, and the stagnant logistics is expected to cause port explosions again, severe shortage of containers + lack of transportation capacity, and transnational freight rates will remain high in the short term. It may happen that logistics are more expensive than goods. Customers who recently placed orders, please pay attention to freight charges and relevant port information.

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