Why is the price of the disposable mask has exploded (and why it could quickly drop)

The prices of disposable masks, ordered at the height of the health crisis, have skyrocketed in recent months. According to JDD, they should refuse until the beginning.

The prices of disposable masks, ordered at the height of the health crisis, have skyrocketed in recent months. According to JDD, they should decrease at the beginning of the year.

Now they will follow the French in their daily life. Introduced from July 20 to all indoor public places, masks are mandatory outdoors in many French cities. This is particularly the case in Paris in some high-use areas. But this phenomenon is combined with a sudden increase in the prices of medical equipment.

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According to JDD, the prices of surgical masks and disposable masks have increased by up to 19 since the start of the health crisis. It was thus increased to approximately EUR 0.05 before the Covid-19 pandemic with a maximum price of EUR 0.95 TTC today (the price is limited by government regulation), the magazine claims. What a drag on the budget of many families, for whom buying masks can become a real expense.

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Offer and demand

This inflation made sense at the height of the crisis, in March-April. “The price increase was driven by two factors, the fall of JDD, a government expert. On the one hand, world demand increased considerably during the crisis and, on the other, the main raw material became scarce and, therefore, more expensive. a non-woven polypropylene veil, which filters particles. In addition, the cost of air transport, which is higher than that of sea transport, also contributed to this price explosion.

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However, the situation is different today. The mask production market has become very competitive, shipping has picked up, and masks are cheaper to produce. “Now they go for €0.07 in China and just €0.04 in India,” according to JDD, which ensures that orders “will not arrive.” “The whole world was at the height of the crisis, the reserve, the rush, which is necessary to pass today,” said a trader with the NewTrends Asia Pacific company.

I do not sell at a loss

In France, selling at a loss is prohibited, shares bought at a high price at the height of the crisis, therefore cannot be sold at too low prices today. They will have to wait for the flow of those stocks – in supermarkets and pharmacies – to notice a drop in prices. Measures to make masks mandatory should speed up this process.

The lower price will also contribute to the multiplication of the production of masks and the return of the delivery by ship. The latter is expected in September. “There’s no need to carry boxes of tissues in first class, a client of a large French company tells JDD. The plane costs one-third to half the price of a mask.”

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The president of Intermarché and Netto, Thierry Cotillard, assures us: “The masks will become a ‘product’ in the same way that Coca-Cola or Nutella, all the posters, are ready to make commercial offers for the new school year” . Carrefour aims to lower the price during the month of September.

Date updated: August 10, 2020, 03:58

Categories: Optical Illusion
Source: newstars.edu.vn

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