Russia-and-Ukraine War Leads Huge Shock in Global Cosmetic Market
- Chaileedo Press
- Feb 25, 2022
- 2 min read
Russia-and-Ukraine war leads the global market into panic, resulting in the global cosmetic-related companies suffered huge drop, wiping over $11.708 million only in one day on 24th. At the same time, the climbing prices of international crude oil will further lead to the higher price of cosmetics raw materials to intensify conflicts on cost.
On February 24, Russian President Vladimir Putin authorized a special military operation in Ukraine's Donbass, according to RIA Novosti. After a while, the news said that loud explosions were heard in the Ukrainian capital. Ukraine declared a state of war throughout its territory.
The sharp escalation of tensions between Russia and Ukraine has also triggered an all-around downturn in major global stock markets. A slight move in one part may affect the situation as a whole. Russia-and-Ukraine war lead the global market into a panic and the world's major stock markets declined in all aspects.
For global stock markets, the 24th was a disaster. The share prices of listed beauty companies in China and the world were also affected by that. We found that the share prices of seven companies, including L'Oreal, Estee Lauder, P&G, Shiseido, Amore Pacific, LG Household & Healthcare, all of them fall 1.51%, 1.61%, 1.25%, 0.67%, 0.81%, 1.95% and 4.8% respectively.
By the close of share on the 24th, 11 companies in China, including Shanghai Jahwa, PROYA, MARUBI, BTN, Lily&Beauty, and Gree Pine, saw their share prices fall sharply and the rate of decline was higher than the market index, with BTN falling as much as 4.88%.
In the current global economic integration, the global economic trends have affected the economic development of the global beauty industry. By calculation, the above 18 domestic and foreign beauty companies in today's share price decline and the overall market value dropped more than $11.708 billion.
While the global stock market is plunging, international oil prices are soaring. As of 12:22 p.m. BST on the 24th, Brent oil prices were reportedly up 3.39% at $100.12 per barrel. NYMEX were up 3.53% at $95.36 per barrel. The main Brent crude oil futures contract broke through the $100 per barrel barrier, setting a new high since September 2014.
In fact, before that, China's refined oil prices experienced "four consecutive increases". As we all know, many chemical raw materials belong to the downstream chain of oil. With the increase in oil prices at the source end, the level of conduction has also led to an increase in the price of cosmetic raw materials and packaging materials.
Under the double rise in the package and raw material prices, it also led to a rise in the cost of cosmetic companies and a rise in the terminal price of cosmetics.
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