Raw Material Prices Rose &Nbsp; The Embarrassment Of Enterprises' Zero Profits.

Rising

A few years ago, she and her husband set up their own carving machine factory for several years.

But the recent rise in costs has made her feel unprecedented pressure.

"Guideway", the main component of this engraving machine, has increased by more than 1300 yuan recently. Enterprises can not rush to raise prices and profits will decrease.

Not only is Cao Rong, but Beijing's Feng Xing Weiye Technology Co., Ltd., specializing in the sales of guideway, told reporters that many mechanical enterprises are facing the same difficulties.

Guide rail as an important part of machine tools, almost all production machine tool enterprises will use.

This year, the sharp rise in the price of guide rails has hurt the machinery industry.

Besides the guideway, the prices of raw materials in a wider range are rising, and enterprises in different positions in the industrial chain are experiencing the same difficulties.

According to the Ministry of commerce data, in from October 11th to 17th, prices of all kinds of means of production, such as mineral products, rubber, non-ferrous metals, chemical products, agricultural materials, energy, building materials, light industrial raw materials and steel prices, all increased in the main production data.

In the first three quarters, the import price of raw materials increased substantially.

According to the Ministry of industry data, crude oil, iron ore and copper increased by more than 40%, of which the price of aluminum products increased by 87.3%.

Under the soaring raw materials, Cao Rong and other small and medium-sized enterprises in the middle and lower reaches of the industrial chain dare not rush to raise their prices. Many enterprises' profits have been greatly reduced, and some competitive industries even face unprofitable embarrassment.

Raw material prices are crazy.

Cao Rong's experience is also staged in the downstream industries of rubber.

It is not only small and medium-sized enterprises that are threatened, but also the leading enterprises and listed companies in the industry are also in a difficult position.

Recently, domestic tire enterprises such as triangle tires and Fengshen tires have announced a rise in price. The price increases range from 5% to 8%.

So far, the tire industry has increased its total price by 12% this year.

However, this far can not make up for the loss of profits from upstream raw material prices. Hairy Jianping rubber industry analyst Mao told reporters that since 2009, natural rubber has already finished 300% of the price increase, and downstream industries have to raise prices passively.

"We can describe the present situation in this way. If we do not raise prices, we will not be able to live."

A triangle tire said so.

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The tire industry is not the only downstream industry affected. Under the combined influence of crude oil and rubber prices, the cost of shoe shoe making enterprises with rubber soles is increasing. Downstream shoe manufacturers have to face the pressure of rising prices.

"The original price of rubber shoes, which is about 8 yuan for each pair of shoes, now rises to nearly 15 yuan. On average, each shoe pair consumes 70% of the cost of the rubber soles."

A shoe manufacturer in Jinjiang told the newspaper reporters that if prices were not increased, it would be difficult for them to continue.

Tires,

In September, PMI data showed that after a substantial increase in the pre purchase price index, the purchase price index rose by 4.8 percentage points again this month, and all 20 sub industries were over 50%.

Among them, the textile industry, agricultural and sideline food processing industry and food manufacturing industry index is above 70%, and the index of consumer goods industry is above 60%.

In this regard, Huatai Securities (17.31, -0.33, -1.87%) analysis pointed out that the purchase price index rose sharply, which could affect the profitability of enterprises.

In fact, reporters learned from the enterprise that the price of raw materials has greatly affected the profitability of enterprises, and some enterprises even appeared zero profit.

The embarrassment of zero profit

"It's getting older!" this is the first reaction of the manager of Ge, a Beijing cable factory, to the price of raw materials.

The wire and cable industry is the largest supporting industry in the electrical appliance industry. It is regarded as the "blood vessel" and "nerve" of the national economy, but these enterprises are facing the embarrassment of zero profit.

The main raw materials of the cable are copper and aluminum.

This year, copper prices have risen by more than 40% and aluminum prices have risen by 87%.

However, because the cable industry is mostly small and medium-sized enterprises, and there are excess capacity, disorder competition phenomenon, in the face of rising raw material prices, enterprises do not dare to raise prices.

Therefore, although the cable price rises, the profits of enterprises are declining.

"There are so many factories that you can't sell them, so it's hard to raise prices."

Ge manager told reporters.

In this case, the enterprise is embarrassed: to maintain the operation of the enterprise and to feed the workers, it must be produced, but the price of raw materials keeps rising, which has made the enterprise unprofitable.

Ge manager told reporters that enterprises are basically white, and the workers can do so.

The same is true for small and medium-sized shoe enterprises that are also affected by raw materials.

The above shoe-making enterprise official told reporters that it is difficult to raise export prices, and small and medium enterprises in a small profit state can only carefully decompose every process on the production line and reduce the waste of raw materials due to poor flow.

Although competition is fierce, raw material prices can hardly be pmitted to terminal consumer goods. Enterprises unable to bear pressure will still try to find room for price increase.

Cao Rong told reporters that they would slowly instilling the logic of price increases to customers, and if other manufacturers increased their prices, she would also choose to go up a little.

Zhu Jianfang, chief economist of CITIC Securities (15.04, -0.44, -2.84%), pointed out that in the context of global monetary policy easing, some commodity prices have surged all the way, which may be a pressure on China's price situation.

Judging from the trend of PPI prices of industrial products, the price of manufactured goods rose 4.3% in September, up 0.6% from the same month.

Although it is in a downward channel, but because of the rising trend of external commodity prices, the downward trend of PPI will slow down. At the same time, there will be a growth in the ring ratio. Many organizations predict that a new round of PPI may rise under the price of raw materials.