The Fireworks Production Area held a conversation On March 3, 2010 in Shangli, Jiangxi province. On the conversation many fireworks enterprisers pointed out that China Firework Manufacturers will facing an enormous pressure with the rising cost.
As the report highlights, the price of fireworks raw materials have been rising last year. The price of barium nitrate, cellophane, sulphur and other raw materials has risen by about 30% than original price. Series of data from Shangli County Chamber of Commerce shows that the local cost is increase more than 38% at average, the cellophane reach to 57% and especially cotton is increase more than 130%. The manager from raw material supplier said, currently the price of fireworks raw materials are a stability situation, the relevant suppliers is starting to a busy season from next month, and the price may is still rising.
Besides the rising cost of fireworks raw materials, owing to labor shortage and inflation, the labor costs also putting pressure to fireworks suppliers. Take cutting fuse process for instance, since last year its cost from ￥0.11/bundle rise to ￥0.15/bundle, it has increased to 36%. Expenses of insurance for enterprises rose to 36%, including workers social security, unemployment insurance and industrial injury insurance etc. Overall labor costs rose as high as 52%.
Recently, as the oil price increases that the cost of transportation and the reconstruction will push up increasingly. Thus, many fireworks manufacturers fall into losing for the above reasons.