Problems with fireworks in 2021

Let’s be honest, the pandemic and the restrictions introduced because of it have taken a toll on everyone. Some industries have benefited, while others—like the pyrotechnics sector—are struggling with growing problems. Lack of product supplies, constant price increases, the discontinuation of strong firecracker production—this is only part of what has been happening in our industry over the past year. But is the pandemic the only thing to blame? New rules for fireworks production It all started in February 2020. Typically at this time, fireworks factories resumed production after the break for Chinese New Year celebrations. Unfortunately, due to COVID-19 restrictions, that didn’t happen this time. To restart production, factories had to meet a number of new requirements and rebuild workstations to ensure maximum safety for their employees. In practice, this wasn’t as simple as it might seem, since even providing basic face masks for everyone was a challenge at that time. Some factories managed to return to work, only to be hit with another announcement on March 1: Ban on exporting firecrackers over 0.2 g NEC …which in practice meant—and still means—the end of strong firecracker production, as we wrote about in more detail here. It’s no secret that this is a huge blow to the pyrotechnics industry worldwide, and few were prepared for it—certainly not importers and wholesalers. Stocks in Poland are shrinking by the day, and for now we can forget about new deliveries. This alone has significantly affected firecracker prices in Poland and Europe. And that’s not the end… From April to November 2020, China issued a series of decrees concerning fireworks production, especially transportation issues. Among other things, the ADR classification rules were changed for specific groups of fireworks. Changes were also introduced regarding documentation, packaging, and especially the issuance of export permits. Transport controls for pyrotechnic materials were tightened. Factories that failed to adapt in time will, at best, pay huge financial penalties, and at worst—be shut down with no possibility of reopening. Many factories therefore had to suspend production while implementing the new rules. Even then, there were already warnings about potential delays in deliveries to Europe… What about transportation? As if that weren’t enough, in the second half of 2020, sea freight prices rose dramatically. This problem affects not only fireworks production but virtually every industry worldwide that imports anything from China. Due to the enormous surge in demand for “Made in China” products during the pandemic, shipping containers also suddenly became scarce. So not only did prices skyrocket many times over, but even paying for transport doesn’t guarantee there will be a way to get goods to Europe (or elsewhere). Logistics bottlenecks around the world and varying pandemic restrictions in different countries have had a massive impact on creating major backlogs in maritime transport. This year’s blockage of a container ship in the Suez Canal also reverberated through fireworks logistics, causing weeks-long delays in deliveries worldwide. Delays drive up transport costs—and so on… Why do prices keep rising, and will they stop at all? In May 2021, we received another update from China about rising fireworks production costs. This time it’s due to over a 50% increase in prices of raw materials used to make fireworks, particularly strontium (up over 50%), paper (up over 60%), aluminum (up over 40%), and others. Literally every raw material used in fireworks has gotten more expensive. Worse yet, we’re already hearing that due to major shortages of these raw materials worldwide and political issues, China expects another round of price hikes, which will directly translate into higher prices for manufactured fireworks. Anything to celebrate? In China—always… Will our only problem in 2021 be a massive price surge and a lack of firecrackers? Unfortunately, no. At the moment it looks like even if importers worldwide decide to place orders at these inflated prices, it doesn’t mean factories will be able to produce and deliver fireworks on time. Why? Due to the 100th anniversary of the founding of the Chinese Communist Party, the authorities in China decided to halt work in pyrotechnic factories starting June 20 for a period of two months. This break further extends the standard annual factory downtime caused by heat waves. Even earlier comes the ancient Dragon Boat Festival, celebrated for over 2,000 years, which entails another several-day break in factory operations. This time, however, such an early production pause may mean that factories won’t manage to deliver even half of the ordered fireworks to Europe on time… So what’s our advice? Don’t leave your purchases to the last minute—plan ahead to secure your favorite fireworks while they’re still available.