Costs in China have continued to rise since the Chinese New Year. The resumption of work and production after the epidemic have led to a recovery in various industries and the prices of raw materials have started to rebound from the trough during the epidemic. The outbreak of military conflict between Russia and Ukraine in March had a huge impact on the crude oil market and domestic prices of oil derivatives began to soar. In the process, we have seen increasing pressure on production costs.
It cannot be ignored that shipping costs have kept high, with freight rates rising by more than ten times creating huge difficulties for sourcing and a new challenge for made-in-china. Some of our overseas customers have indicated that the high freight rates are close to the value of the goods, which is an unprecedented situation.
Luojia Group takes this market change very seriously and takes active measures to reduce costs and increase efficiency, promote continuous optimisation of production processes, and prioritise ensuring the interests of our customers.
We actively locked in raw material prices, formulated scientific and reasonable production plans, strengthened efficient production and reduced waste, and a series of refined management ensured further control of production costs. Meanwhile, we have taken foreign exchange measures to strengthen logistics optimisation and increase turnover efficiency through collaborative deployment.
Our measures have saved a significant amount of costs, and currently Luojia FOB prices are now falling rather than rising, and have been well received by many customers. The biodegradable non-woven products such as CottonLace and FlushA continue to be favoured by customers.
We are confident that we will continue to take innovative measures to create benefits for our customers. Luojia Group will be a reliable partner on their journey to success.
Post time: Jun-20-2023