CNN reported yesterday that China is cracking down on smog offenders in the wake of global coverage of its numerous "red" pollution reports to kick off 2017.
In a move to help alleviate the pollution, the Chinese government is really enforcing their environmental policies in the new year.
"China has slapped millions of dollars worth of fines on alleged offenders for violating anti-pollution rules, according to state media.The move comes as large swaths of the country are blanketed in dangerous, thick smog... It's not clear if the fines were just slapped on government workers or also on companies."
AXA's ears on the ground have confirmed that we will definitely feel the immediate effects of Beijing's crackdown. Some of the factories that have been shut down or temporarily closed due to environmental concerns have been packaging suppliers throughout China.
WHAT DOES THIS MEAN FOR OUR CLIENTS?
This means competition is down, and while demand is the same, supply has gone down. Although AXA hedges its raw materials and keeps a close relationship with all of our suppliers, we recommend that all of our clients to place orders ASAP in order to get ahead of the price increases and capacity congestion. Due to our long-term hedging system, AXA honors its quotations until the stated expiration date no matter the economic environment, so make your quote requests now to lock in your pricing!
FACTORY CLOSURE REMINDER: Our Xinxing, China, facility is officially closing for the Lunar New Year holiday on January 18, 2017. Please ensure all requests and visits are completed prior to January 16 (Monday). Thank you and Happy Lunar New Year!