The crisis in the fireworks market is gaining momentum

Sept. 27, 2021

The situation with the production and shipment of pyrotechnics from China is not getting better
Every day, suppliers and manufacturers of fireworks receive more and more news from transport companies or face new restrictions imposed by the Chinese government.
The main reason for the unprecedented price increase is the rise in the cost of materials for the production of fireworks.
According to various estimates, the cost of chemicals, as well as other related materials, has increased from 15 to 55% over the past year.
The problem is that not all materials for the production of fireworks can be bought in China, some of the chemical components are imported from other countries.
Due to the shortage of shipping containers, importers cannot always receive the components ordered in China on time.
Such delays lead to delays in the production of fireworks and further exports to other countries.
The second most important problem with the production of fireworks is the weather conditions.
In 2021, an unprecedented heat wave was established in China.
The temperature rises to 37 degrees during the day, which makes the production of fireworks unsafe.
It was expected that in September the temperature would go down and factories would be able to work with chemicals full-time.
In reality, each shift comes to work by 5 am and finishes production by 10 am, since later the temperature rises again to dangerous values.
The situation with the coronavirus does not add to the success in the production of pyrotechnics.
It is becoming increasingly difficult for factories to comply with all the necessary isolation and safety measures.
Here and there there are outbreaks of morbidity and some employees do not return to work after the weekend, because restrictions on movement have been announced in one or another province.
The export situation remains unstable.
Every week, the price of transporting fireworks by sea becomes more expensive and there are no visible reasons for slowing down the growth of freight yet.
The price of transporting a 40HQ container to European ports has already exceeded the $ 30,000 mark, for America - $ 35,000, for Russia - $ 33,000.
Even agreeing to pay such an insanely high freight, the supplier does not get a place on the ship and an empty container, since all the world's transport companies are primarily engaged in exporting household goods, and fireworks do not belong to essential goods.
Due to all the above reasons, a lot of pyrotechnic waste for different countries has accumulated in each warehouse of the fireworks factory in China.
Now more and more suppliers are beginning to face the refusal of factories to accept new orders for production, since the manufacturer invests money in materials, produces goods, and it is impossible to send finished products.
Many factories are on the verge of bankruptcy, because without a guarantee of timely arrival of goods to the warehouse, customers are in no hurry to make payments for finished products.
SuperFireworks Co., LTD will continue to inform its readers about the situation with the pyrotechnic business in China.
Stay tuned!