Regarding the price trend of our food emulsifier, it is largely affected by its raw materials, and will follow the price of raw materials and rise and fall accordingly. As we all know, our emulsifiers such as DATEM, CSL, SSL, DMG, etc., whose raw materials are closely related to palm oil. In 2020, the prices of palm oil-based products such as stearic acid and glycerin have risen sharply, which has caused the continuous increase in the price of our food emulsifier products, as well as the influence of factors such as shipping charges, and the product prices remain high.
At the beginning of 2021, the Committee of Palm Oil Producing Countries (CPOP) stated that palm oil prices are likely to remain high in 2021. A report published on its website stated that compared with the average price of the past two years, the outlook for palm oil prices in 2021 looks good, as new plantation areas in Indonesia and Malaysia decrease, and global supply will appear from 2021. Structural changes. These factors are bound to cause the price of food emulsifiers to stabilize at a high level. Affected by the global epidemic, the price of ocean freight will also remain high.
In the previous months, ocean freight has experienced an almost crazy increase. As a result, the prices of CIF and CFR products have risen significantly, and customers' acceptance of prices has undergone a great test. The freight is high, the space is small, and the warehouse explosion is serious, and the dumping of goods has become the norm. Therefore, in the product demand, price acceptance, shipping schedule and many other factors, please consider our customers. In 2021, let us support each other, understand each other, and complete more mutually beneficial import and export business of food emulsifiers! In 2021, all of us will win!