Due to Covid-19 Pandemic the use of non-woven fabric keep increasing, especially in medical needs such us masks and gown. The price of it on the market has also hit record high between March and May 2020. Besides the market price which determined by supply & demand, below are other factors affecting the price:
1. Oil price
The raw material of non-woven fabric is polypropylene, which is derived from crude oil refining substance, so the price of oil with influence price of propylene hence will directly affect the price of non-woven fabric. PT. Karya Sukses Setia always reserves raw material to maintain the comfort level of its availability & assure continues production process.
2. Scale of Economy
Just like any other manufactured product, scale of economy plays significant role to achieve cost efficient target price. Being one of the largest non-woven fabric manufacturer PT. Karya Sukses Setia enjoys good term and condition from suppliers.
3. Technology & Experience
The quality of non-woven fabric is also determined by technology used & experienced production team to allow acceptable uniformity and highest possible mechanical properties such as tensile strength and elongation. PT. Karya Sukses Setia keeps trying to improve its technology know how and inviting talented people to build “tomorrow better than today” factory environment.
4. Location
In the country like Indonesia, where land, labor and utilities are relatively attractive to produce non-woven fabric, the production cost can be adjusted lower to offer competitive price than many other region. PT. Karya Sukses Setia has chosen best area to ensure its competitive advantage.
5. International Trade
Political issues and international trade barriers such as import tariffs and duties also influence price fluctuations. Indonesia as emerging country has benefit of good bilateral and multilateral agreements with many countries in the world.
6. Weather
Weather could lead to significant price different in some regions because they need to adjust the raw material composition & storage for four season country due to extreme changing of weather. Being tropical climate and practically uniform weather throughout the year, Indonesia has the advantage to produce more stable quality.