The hottest raw material price rises. Made in Chin

Rising raw material prices made in China has entered a high-cost era

rising raw material prices made in China has entered a high-cost era

China Construction machinery information

Guide: the cost crisis weakens China 1. The impact of soaring vanadium prices on the cost of vanadium batteries. The competitiveness of the manufacturing industry will not hinder China from becoming a world manufacturing center. Not only China, but all countries in the world are affected by the global rise in the prices of energy, food and raw materials. Affected by the sharp rise in domestic steel prices, the alliance aims to combine the technological achievements and innovation capabilities of the Chinese Academy of Sciences with the operation capabilities, industrial transformation capabilities, market development capabilities, and sales and service capabilities of relevant enterprises. Toyota has begun to improve its model sales in the North American market

"the cost crisis will weaken the competitiveness of China's manufacturing industry, but it will not prevent China from becoming a world manufacturing center. Not only China, but all countries in the world are affected by the global price rise of energy, food and raw materials. Affected by the sharp rise in domestic steel prices, Toyota has begun to raise the price of its models sold in the North American market."

Baosteel, WISCO and other large steel mills recently raised the ex factory price of products in the third quarter by 300~600 yuan/ton, which will continue the sharp rise in steel prices in previous quarters. At the same time, international crude oil prices have frequently hit record highs and are currently hovering at a high of $140 a barrel. The rapid rise in raw material prices has brought unprecedented crisis to China's manufacturing industry, which has always relied on low-cost competition. How to resolve the crisis and turn the crisis into opportunity will be the primary issue in front of every Chinese manufacturing enterprise

the price of raw materials for production has soared. Since 2008, the factory price index (PPI) of industrial products has been running at a high level. As of May, 2008, the ex factory price of means of production increased by 9.2% year-on-year, and the purchase price of raw materials, fuels and power increased by 11.9%

the current comprehensive economic environment determines that the price elasticity of products in many industries in China is high, and the pricing ability of the industry is not strong, so it is difficult to transmit cost pressure to the downstream, and its profit space is compressed. In April, 2008, Chery and JAC, which announced price increases due to cost pressure, saw their sales fall by 2% month on month 75% and 26.4%, both of which were more than twice the average decline of passenger cars in the same month. Home appliance enterprises such as air conditioners, refrigerators, color TVs, etc. have taken the Dragon Boat Festival as an opportunity to reduce prices on a large scale due to the stagnation of sales scale and profits due to price increases at the beginning of the year

the cost crisis hit export manufacturers of low-end products hard. Most export enterprises adopt the mode of long-term contract pricing. Under the background of rising raw material prices, the rise in production costs cannot be immediately reflected in product prices. Most export enterprises have no independent brands, and their bargaining power is weak when negotiating with large foreign importers, so it is difficult to raise export prices. In particular, more than half of the small and medium-sized export enterprises, such as textile, clothing, shoes and hats, have a profit margin of less than 5% after tax, and the rising cost is very likely to lead to losses. According to the statistics of China Textile Industry Association, only 1/3 of the 44200 textile mills recorded made profits. From January to April 2008, the export of clothing and clothing accessories in Guangdong was 6.65 billion US dollars, a decrease of 15.1% over the same period last year

ways to resolve the cost crisis under the pressure of high costs, enterprises use their own strategies to overcome difficulties. Many companies purchase raw materials in a centralized or cross enterprise combination way to reduce the purchase cost. The implementation of unified procurement by the company and unified allocation according to the needs of each department can not only save costs by purchasing in large quantities, but also determine the reserves of raw materials by analyzing market trends, so as to avoid the risk of price fluctuations. Haier implements the "four major" centralized procurement strategy, namely "big orders, big customers, big markets, big resources", and implements centralized procurement of large raw materials such as steel plates, chemical materials, electronic components, etc., saving 20% to 30%

some small and medium-sized enterprises seek Industrial Synergy, avoid low-cost competition, and transmit cost pressure to consumers. Midea, Gree, Galanz and other Guangdong household appliance enterprises sought price alliances, rejected large and low-cost orders, and unanimously outward. Seven domestic mainstream commercial vehicle enterprises jointly established a light truck industry alliance and collectively raised the price of light truck products

in order to alleviate the cost pressure, some enterprises began to invest or cooperate in the upstream of the industrial chain. Sun paper established a subsidiary in Laos to engage in seedling cultivation and demonstration forest construction, and used the cheap raw material resources in Southeast Asia to alleviate the cost pressure caused by the sharp rise in the prices of raw wood pulp and waste paper. Changhong and upstream steel, plastic and other suppliers set up joint laboratories for steel and engineering plastics to develop new alternative raw materials

enterprises with product advantages can be mainly divided into the following three categories through brand, technology and new market development: differentiated business strategies such as market to improve product added value and profit margin. Some textile export enterprises in Foshan, Guangdong have made efforts to explore emerging export markets such as South America, and have made higher profits than traditional markets in Europe and the United States. Based on the production of ordinary polyester fiber, Jiangsu Shenghong group has developed microfiber, which is used to produce high-end sportswear fabrics. The product supply exceeds the demand

entering the era of high cost, high cost will be a threshold for Chinese manufacturing enterprises for a long time to come. PPI will remain high in the future. Affected by the rising international oil and grain prices and the rebound pressure of domestic money and credit, the pressure of price rise is still large; At the same time, in order to expand domestic demand, China's wages have been rising, increasing labor costs. In addition, it is expected that the government will gradually deregulate oil and electricity prices in the future

in the era of high cost, industrial structural adjustment will be accelerated. Enterprises will give more consideration to energy conservation and consumption reduction, improve labor production efficiency, improve technology, and complete the transformation from cost advantage to technical advantage. In order to reduce export dependence, curb international balance of payments imbalances and ease inflation, the government will also vigorously promote industrial restructuring, start the domestic demand market and expand employment

the cost crisis will weaken the competitiveness of China's manufacturing industry, but it will not prevent China from becoming a world manufacturing center. Not only China, but all countries in the world are affected by the global rise in the prices of energy, food and raw materials. Affected by the sharp rise in domestic steel prices, Toyota has begun to raise the price of its models sold in the North American market

Chinese enterprises can reform the raw material procurement mode to reduce costs. Large enterprises can explore international procurement channels and implement effective allocation of resources worldwide. Panasonic has used its global sourcing network to reduce the cost of steel, so its washing machine products can be reduced against the market in China. Small and medium-sized enterprises can jointly purchase raw materials across enterprises to obtain the advantage of procurement scale and bypass raw material middlemen

experts suggest that enterprises should save raw materials and improve labor productivity to establish an efficient supply chain system, a new source of profit. In modern commodities, non productive costs such as logistics account for a large proportion, and reducing logistics costs can compensate for the pressure of rising raw material costs. Chinese enterprises should improve their weak supply chain logistics system in order to reduce the overall cost of piano black paint. Dell, Wal Mart and other industry leaders have all created a further improvement in the profitability of enterprises with the help of supply chain management