Go up and up!
Recently, the prices of chemical raw materials (MDI (diphenylmethane diisocyanate), polyether, EPDM (ethylene propylene diene rubber), polyethylene (PE), polypropylene (PP) and other materials) have risen sharply. As important raw materials for synthetic track and artificial grass, many floor companies feel a lot of pressure.
Of course, there are also analysis and predictions on the Internet on the price trend of the main materials of the synthetic track and the status of the industry, how companies analyze and judge and make countermeasures.
MDI, the main raw material of the synthetic track, increased significantly year-on-year, and other auxiliary materials increased exponentially. With the peak demand season, MDI will continue its high price trend for a period of time.
The rising tide of raw material prices has spread to the synthetic track industry, putting significant pressure on the entire industry chain. Most synthetic tracks and artificial turf companies are facing greater pressure to increase costs.
The price of materials has risen, and the products have risen naturally, but it is difficult for sports flooring companies. School sports venues are generally bound by the rules of winning bids at low prices.
Professionals from many testing institutions worry that there may be an extreme phenomenon of polarization between market prices and product quality in 2021.
The supply of MDI will continue to be tight, and the demand for MDI for sports floor materials will continue to increase from March to June. The expansion and start-up of upstream companies are good, and market prices are expected to fall in the third quarter.
It is better to take the initiative to look for new market growth points if you are afraid. Enterprises should take the opportunity to improve their internal skills, consolidate the foundation for market competition, and seize new development opportunities.
Owners of school sports venues, stadiums, urban fitness trails and park leisure trails need to treat price trends in the sports industry with an objective and rational perspective, and avoid falling into the pit of rotten and poisonous tracks.