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Oil Shortage, Tough Shoes And Other Downstream Industries Are Facing Challenges.

2008/6/16 0:00:00 97

Since June 1st, Sinopec and CNPC have increased the daily volume of gasoline and diesel in Shanghai by 1000 tons to stabilize the market supply. However, there are still many gas stations hanging up business cards, and the oil shortage is still grim.


As the downstream industry of oil, the price rise of raw materials has made shoes, toys, fertilizer and other industries face severe challenges.


Jinjiang, Fujian, Chen Dai Town, the famous shoes capital is facing enormous pressure.

"From May 20th to June 9th, thermoplastic elastomer (SBS) increased by three thousand yuan per ton, or 20%, an average of 1% per day," said Yi Yong, director of Zhiyong sole factory.


SBS is the downstream industry of oil, and the direct reason for suppliers to explain the rise in price is "oil price rise".


The factory price of sole has risen from 6 yuan to about 6.7 yuan.

"The cost has increased by more than one yuan, but the product price can only increase by 70 Fen.

Profit margins are getting smaller and smaller. "


This year's shoe factory with a production capacity of 3 4 million pairs is only medium size in Chen Dai Town, but its profit is reduced to millions of dollars due to rising costs.

"The sole raw material of sole is plastic, all belong to downstream product of oil, the cost of sole cost rises is common."

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