China’s factories, power plants and farms are currently absorbing the consequences of a dramatic increase in commodity costs that has yet to hit the wallets of the country’s citizens, reports Bloomberg.
Suppliers, already dealing with soaring raw material prices, are now losing orders from manufacturers. Electronic goods makers are balking at refined copper prices and slashing orders for rods and pipes, said Henan Qixing Copper Co., a mid-sized copper fabricator.
“It’s a big test of the company’s capital,” said Hai Jianxun, a sales executive at Qixing. This situation “requires much more capital to keep the business running.”