Soaring Costs, Supply-demand Imbalance! Lubricant Price Increases Are A Foregone Conclusion

Market participants believe that trade frictions, exchange rate fluctuations, supply chain tensions and rising logistics costs and other multiple factors, the average production cost of lubricant manufacturers increased significantly, some high-end product costs rose even more than 25 per cent. In addition to the rising cost of raw materials, enterprises are also facing rising logistics and transport costs, environmental compliance inputs and other pressures. Continuously rising costs have a serious impact on the normal operation of enterprises, if you do not adjust the price of products, enterprises will be difficult to maintain production operations, product quality is difficult to guarantee.

Market supply and demand, supply-side pressure continues to increase. Part of the lubricant production enterprises due to high costs, had to reduce the scale of production or even shut down, resulting in a reduction in market supply. With the gradual recovery of the economy, industrial production, transport and other areas of demand for lubricants is expected to gradually rebound, which will further aggravate the imbalance between supply and demand, pushing prices up.