The price rise of synthetic nicotine leads to E-liquid cost increase
In recent months, the rise in raw material prices has become one of the main themes of the upstream, and we recently understand that this trend is still very obvious. Take the price adjustment contact letter issued on July 3 this year, which we recently received as an example. It is very clear that the price of Synthetic Nicotine has risen sharply, so the price of the company’s E-liquid will be increased.
In view of this, we have also conducted verification. At present, a domestic head E-liquid factory is buying Synthetic Nicotine in large quantities at high prices. Before this wave of price increases this year, the price of Synthetic Nicotine has been at the level of more than 1000 yuan or even hundreds of yuan per kilogram for a long time. We can see the magnitude of the price increase this year.
The rise in raw material prices also makes the head brand try to reduce costs by laying out the raw material production and manufacturing links to a large extent. For example, Yueke shares in nicotine salt factory and nuobio, which we reported a few days ago. We speculate that this rise may promote the production of Synthetic Nicotine in more brands, which is largely beneficial to Synthetic Nicotine related companies.
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