Raw materials have gone up in price again.
A few days ago, some Japanese cosmetics factories received upstream price increase notices. For example, BASF decided to implement further price adjustments for all polyurethane products in the European market from April 1, and LG Chem will start to adjust prices for ABS series products from the second quarter. Raise the price.
The latter mentioned ABS products contain dyed materials, which are commonly used on cosmetic bottles due to their good processability and oil resistance properties.
The price increase of chemical companies has also affected the production costs of cosmetic raw material manufacturers, and some relevant practitioners predict that this wave of price increases will continue in the second half of the year.
Production plant performance under pressure
The reporter learned from an interview that the price increase of upstream raw materials is affected by multiple factors.
Some industry insiders said that from the perspective of the international market, due to the current geopolitical instability and the high volatility of international crude oil, the chemical companies in the crude oil industry chain are under great pressure.
When the upstream of the chemical enterprises is pressurized, the raw material manufacturers have to raise their prices.
On the other hand, problems such as factory closures and logistics blockages caused by repeated overseas epidemics are also the main reasons for the current price increase.
Previously, the global chemical giant BASF has shortened working hours and reduced production due to the impact of the epidemic; Swiss flavor and fragrance manufacturer Givaudan also announced a temporary suspension of work after a factory visitor detected an epidemic patient.
Since a considerable part of the raw materials in the Chinese cosmetics market, including emulsifiers, oils, and active substances, are imported from overseas regions such as the United States and Western Europe, this has also put pressure on related companies again.
Li Xiaohu, chairman of Shanghai Oli Industrial Co., Ltd., said in an interview with reporters that cosmetic raw materials have risen several times since the outbreak of the epidemic.
In the past year, the average growth rate of related basic raw material products was 15%-30%.
The rise in upstream raw materials has put pressure on the performance of some processing and production enterprises.
For example, North Bell's parent company, Fujian Qingsong Co., Ltd. (hereinafter referred to as "Qingsong Shares", 300132.SZ) released the 2021 annual performance forecast, showing that the company is expected to achieve operating income of 3.6 billion to 3.8 billion yuan; Yuan to 920 million yuan, which is also the company's first loss since its listing.
Qingsong Co., Ltd. explained that due to factors such as commodity price fluctuations and upstream supply chain tensions, the prices of the main raw materials for cosmetics have continued to rise, resulting in an increase in the production costs of North Bell's cosmetics business in 2021, which will affect the gross profit margin of products. huge pressure.
Qingsong Co., Ltd. described in the report that North Bell focuses on the design, R&D and manufacturing of products such as facial masks, skin care products, wet wipes and non-woven products, and is the largest comprehensive cosmetics manufacturer in China.
The 2021 performance forecast announced by another Zhejiang Jinsheng New Materials Co., Ltd. (hereinafter referred to as "Jinsheng New Materials", 300849.SZ) shows that the company expects to achieve sales revenue of 293 million yuan for the whole year, an increase of 34 million yuan year-on-year, but The net profit attributable to shareholders of listed companies was 12.0742 million yuan, a decrease of 64.99% compared with 34.4894 million yuan in the same period of the previous year.
In this regard, Jinsheng New Materials explained that the company was affected by factors such as rising raw material prices and changes in domestic and foreign customer groups, resulting in a decline in the company's gross profit margin.
Forcing local enterprises to innovate
On the bright side, rising raw material prices are forcing domestic raw material suppliers and foundries to accelerate the independent innovation and development of "new raw materials".
Many industry practitioners have also realized this problem: relying on imported raw materials is not a long-term solution, and local companies should pay attention to the research and development capabilities of cosmetic raw materials.
And some companies are also making efforts to develop and produce raw material substitutes.
Relevant data show that in the 10 years from 2009 to 2019, there were only 4 new local cosmetic raw materials approved in my country.
However, in the past year, the number of new raw material filings approved by local companies has reached 4.
The reporter checked the official website of the State Drug Administration. In the second half of last year, "No. 001" N-acetylneuraminic acid, "No. 002" lauroyl alanine, "No. 003" β-alanyl hydroxyprolyl diaminobutane Four local raw materials, benzylamine acid and "004" snow lotus culture, have passed the approval and filing.
It is not easy for local raw materials to be successful, and the time from early development to final approval is long.
The above-mentioned company that has been approved for filing has previously publicly stated that its raw materials took 6 years from early development to preparation, and completed new structural design, activity screening, efficacy testing, formulation research, and long-term multi-conditional long-term development according to API standards. Stability study.
The continuous increase of new cosmetic raw materials has not only injected a "stimulant" into the development of China's raw material market, but also promoted the technological innovation of the cosmetic industry and the transformation and upgrading of the industry.
Analysts believe that the accelerated emergence of new cosmetic raw materials will promote the rise of China's cosmetic raw material market, and it will also be a development opportunity for the development of local enterprises.