The current crisis is affecting the supply of basic products.
The first quarter of 2022 was expected to be the path to economic recovery, but the Russian invasion of Ukraine has generated a kind of storm with its collateral effects: falling energy prices and transport bottlenecks that are still present in Spain, and the month of April is getting worse and worse. Added to this is a galloping inflation which is added to the crisis in raw materials that is still weighing on manufacturing sectors such as shoe manufacturers.
In this sense, the global industry’s return to production has created a supply crisis that is still being felt, as there is a lot of demand for raw materials and little supply, which has increased the price of raw materials, freight, containers and transport in general. In addition to the price increase in 2021. It was expected that prices would gradually fall with standardization, but the war seems to have cancelled these forecasts.
Strong supply of raw materials and strong demand: the exorbitant prices become unaffordable.
The current period is very complicated for the composites and the shoe industry. The slowdown in transport and the fall in fuel prices are now the square one of the circle of a perfect storm that threatens to keep prices down, at least until the medium term. What does the near future hold for us?