To Rein the Rising Inflation, Production Cost in China is likely to fall, which will result in Lower Pricing of Sodium Benzoate
- 18-Feb-2022 3:50 PM
- Journalist: Xiang Hong
As the markets in China are gradually resuming their operations after a week-long holiday for Lunar New Year celebrations, several traders returning from the festival break are grappling with challenges ranging from weak local manufacturing to an expanding camp of hawkish foreign central banks. Economic trends during the festive season and Winter Beijing Olympics have been quite disappointing. The Chinese government embarks on promoting the concept of low production costs and feedstock prices in order to flatter the economy and make 2022 productive, a year that started on a note of several uncertainties in terms of global trade, including the sudden outbreak of infections and geopolitical tensions.
One of China's top economic planners announced on January 9th that it would boost the holiday consumption during the CNY, as the cases of Omicron variant of the coronavirus flared up in several cities, including Beijing and Tianjin, which have the busiest ports in the country. According to the National Development and Reform Commission (NDRC), in order to unleash the consumption potential and kick start the first quarter economic conditions, opportunities of the traditional shopping season of Spring Festival and Lantern Festival must be constrained, along with adjusting to people's changing habits and demand for better quality products.
As per ChemAnalyst, the prices of Sodium Benzoate are anticipated to decline in the Chinese domestic market as the production cost is likely to witness a sharp fall in the upcoming weeks. Two major Chinese coal data providers halted their price indexes on Wednesday after Beijing augmented a campaign to tame down rallies in the coal and iron ore to combat the inflation and high production rates in the country. China has recently renewed its campaign to prevent the prices of raw materials from getting exorbitant, meanwhile taking a step to stimulate a favorable economy. These high coal prices have skyrocketed in recent weeks across China, which led to an increase in the production cost, despite the manufacturing slowdown due to CNY and curbs on industrial production due to the Winter Olympics. Simultaneously, the Chinese government also aims for improvised energy security, along with expanded domestic coal production and transport infrastructure.