The exchange rate continues to fall! Raw materials prices are rising! Sellers are going crazy...

Since the beginning of this year, the central parity rate of the US dollar against the RMB has fallen from 6.52750 on January 1 to 6.4536 on February 18, and has since fluctuated between 6.4516 and 6.4624. On February 26, the China Foreign Exchange Trading Center announced that the central parity rate of the RMB against the US dollar was 6.4713.

In order to have a good Chinese New Year, some sellers made withdrawals on February 10, the last working day before the Spring Festival. The exchange rate on that day hit a new low at the beginning of the year: 6.4391 . What was even more frustrating was the withdrawal fee. One seller said:

This price increase is another huge challenge for small sellers. The leading companies in the industry will basically lock in the price of raw materials for a certain period of time due to their large consumption, and raw material manufacturers will also have certain price increase conditions or time windows.

However, due to weak financial strength and small purchase volume, small vendors have weak bargaining power with raw material manufacturers, and their cost prices can only go up again and again.