Into 2017, iron ore, coal, natural rubber, paper and other raw materials usher in the “collective price” trend, affecting the market nerve. Especially in recent months, the upstream raw material prices are continuing to go high, forcing the end product frequency out of the “action”, in order to absorb the pressure brought about by rising costs. Industry experts said that with the previous “price tide”, the “price tide” after the majority of domestic industry pattern or new changes will occur, small and medium enterprises profit margins are squeezed, industry concentration will be further enhanced, strong Heng, the industry is expected to usher in a re-shuffle.
A variety of raw materials, “Baotuan prices” spread to many industries
Into 2017, the majority of domestic industries have been coerced into the price increases, prices have become the majority of the industry’s “main theme.” According to market monitoring, the current natural rubber, iron ore, paper, home building materials and other raw materials or larger, has stirred up to the stability of the terminal market, causing many concerns. So how much of these raw materials in the end, resulting in a number of small and medium enterprises “complain” profit margins are squeezed?
It is reported that in 2017, natural rubber prices continue to rise in 2016 trend, the price from the beginning of 2016 9000 yuan / ton, all the way up to 2 million / ton, or 122.2%. January 2017 natural rubber futures prices rose 26%, a record high since 1990, This is reflected in the tire production enterprises, is the sky price notice.
“Tire prices have risen since the end of last year, so far, some tire manufacturers have completed two or three rounds of price increases.” Insiders believe that the current manufacturers have raised tire prices, but the adjustment is far lower than the raw material prices , And mainly for the replacement tire market.
According to the official website announced, from last November, Goodyear, Michelin, Pirelli, Zhongce, etc. have announced price increases, and 2017 in January and February, the tire price increases appear. Reporters from Henan Fengshen Tire Co., Ltd. (hereinafter referred to Fengshen tires) Marketing Department learned that Fengshen tires earlier this year have also joined the tide of price increases, January 1, 2017 onwards, its all-steel radial tire prices rose 2% to 3 %, As of now, the main sales of passenger tires, truck tires, construction machinery tires have been completed at least two rounds of price increases, including car tires rose about 10%.
The iron ore prices have risen by about 20% in the past two months since 2017, far exceeding the Goldman Sachs Company, and the iron ore prices have risen by about 20% in the past two months since 2017, according to the Ministry of Commerce. Originally estimated price range of $ 50 to $ 60 per tonne. As we all know, iron ore is one of the most important raw materials for steel production, and the rise in ore prices comes from steel prices. The reality is also the case, the reporter learned from the Henan Iron and Steel Industry Association, from the current point of view of demand, iron ore is mainly used for real estate infrastructure, and three or four months is the real estate infrastructure demand season, coupled with steel ” “Policy to promote the recent rise in steel prices possible, as to how long, no clear answer.
“It is reported that as of February 17, China’s port iron ore stocks rose for the seventh consecutive week, the total over 126 million tons, a new record high.” According to some market participants believe that, in accordance with the law of economics, the backlog of inventory, means that the market demand is weak, oversupply. But the price increases, means that the market is hot, in short supply. The two indicators that are moving in the opposite direction are suddenly at the same time, meaning that the market is under some unusual circumstances.
In addition to natural rubber, iron ore, and the civilian population of the most close to the carton packaging, home appliances, raw materials, etc., also like playing chicken blood, have ushered in price tide. According to the China Household Electrical Appliances Association, said Jiang Feng, from December last year, household electrical appliance enterprises began brewing product price adjustment. From the current point of view, the overall price adjustment rate of about 10%, the main reason is that the recent rise in a variety of raw materials, especially with the appliance industry is closely related to copper, steel, plastics, aluminum and other raw materials prices.
“The cost of raw materials is the main part of the price of home appliances, for refrigerators, air conditioners and other white products, the bulk of the cost of steel and plastic hardware, etc .; and panel, LCD screen is a TV production costs accounted for 70% to 80% , This part of the rising prices of raw materials, and ultimately lead to finished product prices. “Zhengzhou, a home appliance store a sales staff said.
“Price is not easy to make money more difficult” small and medium enterprises dilemma
Raw materials “price tide” struck, companies must bear the brunt of In theory, raw material prices in terms of small and medium enterprises is a challenge, production costs increase, profit margins will become smaller, then, if the company to raise prices through the storm, it may lose the original price competitive advantage; if not Improve product prices, to maintain the original price, then will face increased costs, profits squeeze. Therefore, raw material prices so that some small and medium enterprises dilemma, lament “price is not easy to make money more difficult.”
“Now the situation is like playing cards, riding a tiger, who do not know the next one is the market shuffle who.” According to the relevant industry, said the rise in raw materials for small and medium enterprises is a challenge.
With the rising prices of raw materials, the purchase of the same raw materials, enterprises need to pay more money, all along, some small and medium enterprises rely on bank loans to survive, the company’s lack of liquidity, because the company’s credibility and difficult to borrow from the bank, Financial difficulties are the key factors leading to the collapse of enterprises.
For a long time, most small and medium enterprises with the price advantage in the market to occupy a place in order to compete with large enterprises, and now raw material prices will inevitably lead to rising product prices, low-end products and high-end products, the price difference is greatly reduced, and consumers In the choice of products, will naturally give up the price advantage of small brand products, choose large brand products, which will undoubtedly reduce the sales of small and medium enterprises.
This phenomenon in the tire production industry’s performance is particularly prominent, according to Fengshen tire internal sales staff revealed that the price adjustment is more frequent to small and medium-sized tire companies, and large-scale tire companies after several price adjustments, now Basically stabilized. This is mainly because the two different procurement methods, many small and medium-sized tire companies due to their own financial constraints, and more use of “cash” is the form, so the impact of changes in raw material market is relatively large. And large-scale tire business procurement will basically take the futures, quarterly or half a year for a purchase cycle, so when the raw material prices change, they will be affected by the impact of a few months, while the product in the sale of small and medium tires business prices War obviously beat large enterprises.
Whether the tire production enterprises, the steel industry or the paper industry, home appliance industry, in this price tide, rely on low-cost win small and medium enterprises in the market competitiveness will be significantly reduced, and in the capital and industry chain does not account for Advantage, so living space will become more narrow. In addition, with a new round of environmental inspection at the beginning of 2017, making the production process is not up to the enterprise is difficult to survive, is likely to usher in a number of small and medium enterprises closed down. According to industry estimates, after the “price tide”, the concentration of the industry will be further enhanced, leading enterprises obvious advantages, small and medium enterprises face innovation and new challenges.
Raw materials “price tide” spawned a new trend of enterprise innovation and upgrading
With the raw material prices and production costs continue to rise, to the difficult living conditions of the manufacturing enterprises, has brought more heavy pressure. According to expert analysis, this round of “price tide” may be a double-edged sword. On the one hand, the cost increases, the profit margins of the production enterprises will be squeezed, which will enable enterprises in the production of products to control production costs, with poor or even shoddy raw materials for production, shoddy, of course, these enterprises are actually “On the other hand, the pressure can also be transformed into power, to promote some small and medium enterprises in the plight of innovation and change in the tide of price increases in their own, developed into elite enterprises.”
To the appliance industry, for example, in the face of pressure on rising raw material prices, television companies have long been in a loss and low-profit state, so manufacturers are taking the initiative to change, and enhance brand reputation and product value added to the future survival of the development of household appliances Competitive. Industry experts believe that the intelligent home appliances, large-screen, entertainment, will make home appliances become a family life center, is the trend after the price war.
In this regard, many traditional home appliances related enterprises have begun to transition, Skyworth, Changhong, Hisense, TCL and other television companies are intended to adjust the product structure to resolve price pressures, that is to continue to reduce the proportion of small size models, a corresponding increase of 55 inches or more In the high-end, especially OLED products put; Haier is working with Alibaba shares Haier multimedia, intends to inject TV assets into the listed company; and Foxconn in Shenzhen to invest in the construction of a new generation of LCD production line at the same time, announced the establishment of intelligent home appliances in Shenzhen R & D center; Hisense Group also decided to expand the Silicon Valley R & D institutions, upgraded to R & D center, to expand the chip, optical communications, artificial intelligence and other core technology research … …
In addition, in addition to technical innovation, to strengthen the supply chain cost management is to respond to “price tide” of a strategy. In this regard, the market to steel, for example, pointed out that iron ore prices led to the rise in steel, and steel prices not only affect the cost of auto parts products, and ultimately affect the cost of the vehicle. Therefore, the more the end of the chain of product manufacturers, the more the cost management to move forward to the supply side, from the back before the order to promote its supply side to strengthen cost management, and ultimately the entire supply chain to act together in the cost of effort , In order to achieve the purpose of reducing costs and improving efficiency.
It is not difficult to see that this round of raw materials, “price tide”, the enterprise itself out of the dilemma to play the main responsibility, but to help the entity “burden” is also an urgent need to solve the problem. In March this year, the two sessions held by the National Development and Reform Commission, deputy director of Ning Ji Zhe said that in the face of some of the international commodity trend this year there are still uncertainties, instability, input prices may increase the pressure of the situation , The National Development and Reform Commission will pay close attention to CPI, PPI and its movements, camera selection, precise control, to ensure that the overall price level is basically stable, to help enterprises to innovate the transition through the storm.
In this way, “price tide” really can bring a reshuffle for the industry, washed away those who are in the price war of small and medium enterprises, leaving the market to withstand the test of the brand enterprises, and thus promote the industry’s sustained health development of.
Translated by Google Translator from http://market.cria.org.cn/25/36922.html
