Numerous factories shutdown or temporarily stopped production in China’s southern manufacturing sector as the price of raw materials skyrocketed, reported the South China Morning Post.
A wide variety of industries throughout Guangdong province are struggling to make a profit and express concerns over inflation risks. Affected enterprises range from steel casting to home appliance manufacturers.
Chinese manufacturers say that sourcing materials has become too expensive as the pandemic affects global supply chains. “The cost of casting materials has far exceeded the company’s gross profit, and it has reached the point where we can no longer afford any loss,” said a statement by one of Guangdong’s largest factories.