Forecast shortage of Powders (and ammunition)

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larry7293

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There is an article in the hard copy of Firearms News, April 2024 issue (page 22) reporting on a forecast shortage of Powders (and ammunition). The single most surprising (NOT) revelation is that the reduction/limitation/cut off of importation of Nitrocellulose from Communist China is the greatest impact factor.
I saw this mentioned on another website. Anyone else heard of this?
 
I haven’t heard about that specific reason but it makes sense that we’d have yet another factor hurting the average consumer. EVERYTHING over the last 4 years has hurt the average consumer. Of course that’s all small beans compared to the looming WWIII that’s ready to explode any minute. Gotta get the election cancelled/postponed somehow. 🤨. We can get raw materials from somewhere other than China and eventually be ok. Except it’ll cost more. So did our government have a good backup source before China cut us off? Or did we cut ourselves off? We can assume the least efficient rout was taken to ensure the shortage. :thumbup:
 
Sgammo’s newsletter says that companies will increase prices next month.

We have become aware of another round or price increases from the ammo factories, and the top 5 items in today's newsletter represent a handful of items that will be effected very soon. This is the 'last call' at current pricing for these 5 items. The Kinetic group (AKA Vista & the brands CCI, Speer, Federal and Remington) has announced a May 1st price increase on all handgun ammo. Winchester just went up on 9mm and is expected to follow Federal on other calibers in May. Magtech / S&B have verbally stated they will follow Federal's lead and increase in a similar percentage, and Prvi Partizan announced verbally they are doing a 6% to 7% price increase coming in June. If you care about paying prices that are 7% more, now is the time to buy.”
 
"News from Shotshow 2024: I just got home from 4 days in Las Vegas at the shotshow, where I met with the people from the factories we work with, factory sales people, factory directors and owners, importers, etc. The big point of discussion seemed to be shortness in supply for nitrocellulose, which is the raw material used to make gunpowder and other propellants and explosives. Based on these conversations, the issue seems to be based on 2 factors, decreased availability in the supply chain and increased demand for the manufacturing of military ordnance. Getting into the details and a little more, a huge percentage of the nitrocellulose used to make gunpowder historically came from China and Russia, however according to my conversations with industry partners, the Chinese manufacturers who historically were the biggest suppliers at over 30% of the market share are no longer willing to ship raw nitrocellulose to the USA or NATO member countries in attempt to reduce the USA & NATO’s ability to supply Ukrainian forces with artillery shells, and of course Russia who historically was the 2nd biggest supplier is out of the supply chain as well. This decrease in supply in raw material has gunpowder manufacturers in the USA raising prices dramatically and cutting off many of the smaller ammo manufacturers. The 2nd part of this issue is the demand for military ordnance, like 155mm artillery shells that use huge quantities gunpowder propellants, and the gunpowder manufacturers switching production to this type of gunpowder with what supply of nitrocellulose they do get. The first reason is that they always put the US government’s needs before those of the commercial market, and the second reason is that it is simply much more profitable to manufacturer military ordnance than it is small caliber ammunition, so they get a much more profitable price manufacturing powder for artillery shells. In conclusion, while most of the factories seem to have gunpowder stockpiled today, this issue is expected to catch up to them no later than the summer of 2024 and possibly within a few months, and when it does it will mean the factories will be capable of producing much less small caliber ammunition to sell to the US commercial market. If demand for ammo is low to moderate, you may not see a big change, but if demand were to go way up as it does periodically, the factories will not be able to ramp up capacity to fill that demand. In my opinion, a lot could go wrong in the commercial ammo supply chain in 2024 and it would be wise to stock up sooner than later as 2024 price increases have just started to set in on just a handful of select items so far, and availability is still good which has held prices down temporarily."
 
I highly doubt that China “ cut us off”….
We have been their main economy builder for years, they won’t shut off the gift horse…

It is MY opinion, let me state that again….MY opinion, that this is exactly the scare tactics of these kinds of statements from ammo/propellant/component companies intend to drive.
Sending us into a frenzy buying up everything we see….
I’m not saying to NOT stock up when you can, but not the hoarding purchases that get us into these messes in the first place….

AGAIN…….ONLY MY OPINION…..
 
I highly doubt that China “ cut us off”….
We have been their main economy builder for years, they won’t shut off the gift horse…

It is MY opinion, let me state that again….MY opinion, that this is exactly the scare tactics of these kinds of statements from ammo/propellant/component companies intend to drive.
Sending us into a frenzy buying up everything we see….
I’m not saying to NOT stock up when you can, but not the hoarding purchases that get us into these messes in the first place….

AGAIN…….ONLY MY OPINION…..

This 100%
 
Sgammo’s newsletter says that companies will increase prices next month.

We have become aware of another round or price increases from the ammo factories, and the top 5 items in today's newsletter represent a handful of items that will be effected very soon. This is the 'last call' at current pricing for these 5 items. The Kinetic group (AKA Vista & the brands CCI, Speer, Federal and Remington) has announced a May 1st price increase on all handgun ammo. Winchester just went up on 9mm and is expected to follow Federal on other calibers in May. Magtech / S&B have verbally stated they will follow Federal's lead and increase in a similar percentage, and Prvi Partizan announced verbally they are doing a 6% to 7% price increase coming in June. If you care about paying prices that are 7% more, now is the time to buy.”
If this all turns out true and accurate, there’s no reason to panic or hoard. 7% sucks but it was coming eventually anyway. It’s the kind of thing many people expect.
 
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