The price increase of raw materials is the premise of improving market order and rationally allocating market resources. The price increase of raw materials is an inevitable result and a long-term trend. Faced with this trend, no enterprise can be indifferent. Only by actively promoting enterprise progress and improving management can we solve a series of problems brought about by this.

The effects of rising raw material prices are:

1, raw material enterprises, the relative profit increased;

2. As the cost of downstream enterprises increases, the profits of downstream enterprises will decrease;

For the whole national economy, the demand for raw materials is large and the economy is improving.

Influence of raw material price change on finished product cost: influence of direct material quantity change per unit product = (actual material consumption-planned material consumption) × planned material unit price = (actual material consumption-planned material consumption )× actual material consumption.

The long-term low price of raw materials has stimulated the economic development and the prosperity of manufacturing industry to a certain extent for a period of time, but it has also caused unfairness and inequality, which has affected the healthy development of the national economy and manufacturing industry. Therefore, the price increase of raw materials is the premise of improving market order and rationally allocating market resources.

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