Much of the global manufacturing is quickly moving out of the doldrums and gearing up significantly! The recovery is of course most welcome by all but it is not well synchronized and we expect to see some major imbalances. In the past months there has been a massive increases in freight costs from China that is only slowly declining, an appreciating Chinese currency, a Brexit not quite as expected, big increases (40-200%) in nitrile, latex and PU cost and now we see fast price increases in textile materials too (15+%).
So what can we do?
Eureka is ramping up production and keep good a stock level and is following relevant markets to mitigate abrupt changes.
We also strongly recommend our customers to rebuild stock in time and be prepared for price changes so that the entire supply chain is prepared for the better times that we all expect and long for.