Discussion on EDTA Manufacturers' Strategies for Coping with Price Volatility under Global Supply Chain Pressure

Since recent years, the pattern of global commerce has changed frequently, and the state of supply and demand is impermanent, especially in the chemical industry. From the perspective of EDTA manufacturing, Huihuang Chemical Plant is in a state of change, and its situation is quite observable.

EDTA manufacturers have a wide range of uses and are indispensable in chemical, pharmaceutical, and food fields. However, at present, the global supply chain is frequently under heavy pressure, and all things are turbulent, causing the cost, supply and demand of EDTA manufacturing to be uncertain, and prices to fluctuate.

First, the raw materials are at one end. The manufacture of EDTA requires a variety of raw materials, and the supply and transportation of these raw materials are often restricted by many parties. Or due to natural disasters in the place of origin, the crop is not harvested, and the source of raw materials is sharply reduced; or due to geographical disputes, traffic is blocked, logistics is not smooth, and raw materials are difficult to reach the factory. Huihuang Chemical used to rely on a stable supply of raw materials to control costs and ensure stable prices. Today, the price of raw materials has risen, and factories have to buy at high prices to maintain production. This is one of the big ends of price fluctuations.

Second discussion on the production process. Manufacturing EDTA requires complicated processes, skilled technology, and good equipment. However, when the supply chain is tight, it may be difficult to obtain maintenance parts and production aids for equipment immediately. If the equipment malfunctions suddenly and the parts are hard to find, the production will be hindered. Huihuang Chemical once had a shortage of a key auxiliary agent, the output was halved, the market supply was small but the demand was not reduced, and the price rose. This change in production caused price fluctuations.

Furthermore, the logistics dilemma cannot be ignored. Under the pressure of the global supply chain, shipping is congested, and freight is expensive. EDTA is made, and it wants to be exported to customers all over the world, so the logistics cost increases greatly. Although Huihuang Chemical wants to supply the market at a affordable price, the burden of logistics makes it have to increase the price to maintain a surplus. This logistics dilemma caused price fluctuations.

Faced with such a dilemma, Huihuang Chemical has tried various strategies to correct it. First, expand the source of raw materials. Do not rely solely on the place where it is often supplied, but also look for other mines and factories that can be mined and produced, and contract with them to ensure the stability of raw materials. Second, focus on technological innovation. Invest in research and development, seek to improve the process, in the hope of saving raw materials and improving efficiency, and reducing costs to the invisible. Third, seek the good of logistics. Negotiate good strategies with logistics giants, or jointly transport to reduce costs, or find new ways to transport smoothly, hoping to solve the logistics dilemma.

Huihuang Chemical under the pressure of the global supply chain, in the EDTA price fluctuations, with determination, change the policy, although the road ahead is difficult, but still forge ahead, hoping to stabilize the market, to maintain the order of the industry, for the industry model.