Top News Chief Reporter Yang Guifang.
With the Spring Festival approaching, China's four major fireworks and firecracker production bases such as Liling in Hunan, Liuyang in Changsha, Yichun in Jiangxi and Shangli in Jiangxi are in full swing.
Affected by the factors of raw materials, Gatling, jellyfish, combination fireworks, fairy sticks and other Internet celebrity hot sales are very tight on the sales side, and some companies once exploded orders.
According to the survey, the purchase price of black powder, the raw material made by Gatling, was 150,000 tons climbed to 30,000 tons, and even small firecracker manufacturers had to stop work because they could not get raw materials.
[The ban on change and restriction has become the general trend, and many counties and districts have issued Spring Festival restriction measures].
Recently, Boshan District, Zibo, Shandong Province, Nansha District and Panyu District, Guangzhou City, Guiyang Economic and Technological Development Zone, Zhuozi County, Inner Mongolia, Hainan District, Wuhai City, Lintao County, Shandong Province, Laiyang City, Jiaojiang District, Taizhou City, and Xiaoshan District, Hangzhou City issued relevant announcements to clarify the fireworks and firecrackers monopoly retail application license measures, delineate the fireworks during the Spring Festival, and actively promote the prohibition and restriction of restrictions.
For a time, the ban and restriction became the general trend. In the four major fireworks and firecracker production bases, the first research group from many cities and counties across the country was ushered in, and some production bases took the initiative to go to other provinces to investigate the market situation.
In Liling, Hunan, there are more than 170 fireworks and firecrackers in production enterprises, with more than 500 production areas and a production scale of more than 20 billion yuan. According to the relevant person in charge of the Henan Branch of the Liling Fireworks and Firecrackers Chamber of Commerce, increasing production capacity is the consensus of the current enterprises, compared with last year, the fireworks and firecrackers production capacity in Liling City has increased by about 30% this year. As more and more cities and counties "ban and restrict" fireworks, manufacturers are full of confidence in the market.
The expectations of the production and sales side for the market are also reflected in the warehousing. This year, the special warehouse for fireworks and firecrackers in the Liling production area has been expanded, and the storage capacity has increased, but the current storage capacity of the warehouse cannot keep up with the market demand.
Affected by the temporary introduction of the "ban on reform and restriction" policy in some provinces last year, manufacturers and transportation companies were caught off guard, coupled with counterfeit and shoddy products, shoddy products hit the market, the market was once chaotic, this year manufacturers and transportation enterprises are preparing in advance, promoting the development of the industry in an orderly, good, high-quality direction.
[Black powder ** has doubled, and the production enterprise is carrying money, but it is difficult to buy the goods].
For consumers, the issue is the most concerned. Will there be a situation where the terminal ** has increased several times last year?
There are many production enterprises in the four major bases, and it is difficult to repeat the chaotic situation last year.
The above-mentioned person in charge of the Liling Fireworks and Firecrackers Chamber of Commerce mentioned that last year, it was mainly due to the sudden ban on some provinces and cities, the shortage of goods in the market, and the "restocking", resulting in the terminal being as expensive as Luoyang paper overnight, and there was an industry unimaginable. This situation is abnormal and irrational. But this year, everyone's reserve time is much earlier, and I believe that ** will be relatively stable, and when consumers buy, ** will be lower than last year.
But the pressure is on the production side.
After the production of fireworks and firecrackers entered the peak season in September this year, the purchase of black powder soared, starting with 1About 50,000 tons of goods, with a range of 2,000 yuan and 3,000 yuan, has reached 30,000 tons and still cannot buy goods.
According to Zhong Zimin, president of the Liuyang Fireworks and Firecrackers Association, this year's Internet celebrity fireworks such as Gatling and combination fireworks are very popular. In addition to the increase in market demand, it was also affected by the restriction of the raw material black powder (propellant)**. At present, black powder has been in a situation where 30,000 tons are difficult to buy, and the black powder produced by enterprises with a complete industrial chain is only enough to meet the production needs of their own enterprises, and they have to stop production if they can't buy fireworks.
It is understood that as an important part of the production and configuration of fireworks and firecrackers, the production of black powder has a strict approval system, and the investment is relatively large, from the application to the approval to the construction and production, it will take one year at the earliest.
The above-mentioned person in charge of the Liling Fireworks and Firecrackers Chamber of Commerce mentioned that it is expected to strive to adjust the structure and match the production capacity in terms of the first place.
Potassium perchlorate is a reactive agent for firecrackers, which can make firecrackers have higher efficiency and faster reaction speed. This raw material is also in short supply, affecting the production capacity of fireworks and firecracker manufacturers.
According to Zeng Xuegen, president of the Fireworks and Firecrackers Chamber of Commerce in Wanzai County, Yichun, Jiangxi, the situation of upstream raw materials is reflected in the production end, and then related to the sales end, forming a chain reaction.
[Transportation companies increase capacity, and there are orders that will not be sent until April next year].
The trend of banning and restricting fireworks has also affected the industrial model of the entire fireworks and firecracker production enterprises.
In previous years, fireworks and firecrackers purchased goods from manufacturers by prepaying part of the funds and paying the balance after getting the goods.
Now, that's a reversal.
Zhong Zimin has been busy with production and coordinating delivery recently, because customers are urging goods, and the factory needs to try to meet the needs of customers.
According to him, now the advance payment may not be able to receive the goods, and some sellers with large pre-orders are expected to receive the goods until around Qingming in April next year.
Affected by the difficulty of finding a single item during the Spring Festival in 2023, the anxiety on the sales side has continued to the present. After the beginning of spring in 2023, some sellers will go to the manufacturer to place an order, and it has become a consensus in the industry to get the goods in full.
Before the Spring Festival in 2023, there is also a situation: there is a shortage of special vehicles for the transportation of fireworks and firecrackers, and some sellers have not been able to wait for a few days for the vehicles to help transport.
This year, this phenomenon has been alleviated. The above-mentioned person in charge of the Liling Fireworks and Firecrackers Chamber of Commerce said that this year, transportation companies have invested a lot of money to increase capacity, and some transportation companies have increased their capacity by 20%-30% as a whole to ensure transportation.
[Fireworks shows are blooming in many cities around the world, and consumer groups are changing].
Yan Huaquan, president of the Shangli County Firecracker Chamber of Commerce in Jiangxi Province, has been very busy recently, and he hopes to take advantage of the period before the Spring Festival to conduct research on some provinces and cities to see the demand and changes in the market.
At present, he is researching in Shanghai with the personnel of the relevant departments of Shangli County, and he has already investigated Yunnan, Kunming and other places before this.
Take the initiative to get out there, get to know the market, and see what's going on outside. Yan Huaquan said that Shangli County attaches great importance to this industry, and plans to go to Zhejiang for the next stop after the investigation in Shanghai.
What are the changes in the consumption of fireworks and firecrackers?
Zeng Xuegen believes that the main reason is that the current market demand for fireworks and firecrackers has changed.
He mentioned that on the one hand, with the successive bans and restrictions in some provinces and cities, the market demand has expanded, and on the other hand, the age coverage of consumer groups has changed. For example, before the consumer groups of fireworks and firecrackers were mostly middle-aged and elderly people who paid attention to the sense of traditional rituals, but with the prosperity of short **, driving the spread of traditional culture among young people, a large number of young people like fireworks.
Many people believe that fireworks are a holiday preference in traditional Chinese Xi, but in fact, large-scale fireworks shows are being held in many cities around the world.
The annual Liuyang International Fireworks Festival, which has been held since 1991, attracts manufacturers from all over the world to show their skills.
In the middle of 2023, South Korea will hold the Seoul World Fireworks Festival, which also attracts the participation of many representative companies.
In addition, large-scale fireworks displays have been held in Toronto, Canada, New York, Paris, and Bangkok, Thailand.