Spinning Clothing Industry: The So-Called Cost Push Up The Price, Rather Than The Market Pull.

NDRC "limit price" does not involve industrial products.

A number of consumer goods companies, which once hoped to raise sales prices in April, had to postpone the price increase arrangement.

Since March, the national development and Reform Commission (NDRC) has been attacking all over the world in order to control prices.

In April 20th, the NDRC responded to questions about its "negotiation" limit by answering reporters' questions on its website, saying: "interviews are a way of communication, not administrative intervention, let alone interfere with the pricing autonomy of enterprises.

We talk about related enterprises, mainly reiterate price laws and policies, and guide enterprises to exercise their pricing autonomy better, reasonably and legally.

The National Bureau of statistics released the first quarter economic data.

Data show that consumer prices rose 5% in the first quarter, up from 5.4% in March.

A NDRC official said that they would not intervene or limit prices for industrial products. They focused on price control in various consumer goods industries and believed that there was still room for price fixing.

"Talks" become the trend

Market rumors, several major edible oil press enterprises have won the support of State Reserve soybeans, and Chinese enterprises are canceling the purchase of soybean international orders.

"Yes, we can buy the soybeans from the State Reserve at a low price," said one insider of a grain central enterprise. "We have been carrying out the policy of not increasing the price of the government, and the cost pressure of the enterprises is very high. The government's move is to relieve our pressure."

From the end of last year to now, the price limit measures in the edible oil industry have been implemented for 5 months, and have been extended for another two months since April.

In March 31st, after being interviewed by the NDRC, four companies such as P & G, Unilever, Libai and Nye were made.

Subsequently, the scope of the talks expanded.

In April 2nd, the national development and Reform Commission held the "important consumer goods Industry Association Symposium". All the 17 trade associations, chamber of Commerce, President and secretary general from food, beverage, department stores, household appliances, wine making, grain, meat and so on were present.

It is reported that at the meeting, the NDRC hoped that the association or the chamber of Commerce would take the lead in self-discipline so as to avoid collusion in unreasonable price increases and exceed costs. At the same time, it explicitly requested that all associations and chambers of commerce should be able to issue industry proposals separately or jointly.

"Since March, a number of enterprises such as daily chemicals, instant noodles and liquor have published information on price increase in the media, which has promoted the anticipation of the market's rising prices, and the phenomenon of small scale panic buying has appeared in some places, which has caused market disorder to a certain extent."

The NDRC explained the reasons for the recent intensive interviews with various trade associations, "reiterated price laws and policies."

Price fixing logic of the NDRC

However, it is understood that in addition to industries related to consumer goods, the NDRC does not intend to intervene in more industrial areas.

"Industrial products such as silicon and steel will not be regulated."

"These products will depend entirely on market pricing," said a deputy director of the price department of the NDRC.

In response to the suggestion that some industrial enterprises plan to increase their prices because of rising costs, the person replied, "the market demand is strong, so the enterprises will increase their prices, and the cost will only play a small role."

"The NDRC will not control us."

A company based on the production of industrial products said, "the NDRC pays more attention to people's life related industries."

The NDRC sources revealed the NDRC.

However, many consumer goods enterprises say that the cost of raw materials and labor has gone up too much, and the original profit margins have not.

For example, Nye said: the gross profit of its products has been around 5%~10%, and the cost of raw materials has risen by about 5%, and profits have been eliminated.

For the rising prices of industrial products such as graphite, silicon dioxide and steel, the afore-mentioned people said they would not interfere.

Reporters learned that graphite, silicon and other products in six months time has entered a rapid price increase period.

Subose, President of the Greater China region of Wacker group, Germany, said: "the cost of some raw materials is increasing.

Such as silicon metal, methanol, and some ethylene, acetic acid and so on.

This company controls the huge production capacity of the domestic high-end polysilicon field.

"In fact, in Europe, we have announced that our products have gone up in price, and there is such possibility in China."

Zhou Bo said.

"We have done statistics in recent years.

As for why the price of industrial raw materials is not properly priced, consumer goods companies are also puzzled, and the NDRC has not made any further explanation.

Sun Huaibin, a spokesman for the textile industry association, confirmed that "the textile industry's raw material growth indeed exceeded the terminal price increase. This situation is mainly due to the terminal price being the result of market competition, but at present, the enterprises do bear a lot of cost pressure."

"We have been responding to the national policy and no price increases, but the pressure of the enterprises is very large," said an insider who owns nearly half of the domestic edible oil market.

We have cut the department budget many times, and the situation is really tough. "

In the press release of the NDRC, there are many reasons for pushing prices up. They include both the promotion of cost increase and the changes in the supply and demand structure of some products. There are both import factors for the increase of commodity prices in the international market, as well as deeper reasons for the global liquidity. There are speculative speculation in social hot money, and some operators are following the trend of rising prices.

The hardest part in the second half of the year

Can we solve the cost?

"We have some long-term contracts for silicon metal, and we will also take some vertical takeover measures to reduce the impact of market fluctuations.

Last year we bought a silicon metal factory in Norway to ensure our supply, so that we could have some preventive measures against price changes.

Germany Warwick group Zhou BOSCH said.

YIHAI KERRY is relying on the whole industry chain to reduce the loss of crushing links in the field of soybean protein.

Other enterprises have already changed the internal management process. "Before, our order would be 4 seasons a year, and now it has become a 6 season of a year. The frequency of ordering will increase, and the peak and trough state of the previous production cycle will be changed. The raw materials such as raw yarn, cotton yarn and other raw materials will not be affected by the fluctuation of the peak season, which will stabilize the price of raw materials to a certain extent."

Mark Ed Faye CEO Yang Kuntian said.

"The current situation makes me feel that I have exceeded the financial crisis of that year, and it is the time to really test the business."

Yin Xiaoliang, general manager of Beijing energy and Electrical Technology Co., Ltd., told reporters that "banks are tightening up, and enterprises are facing increased costs. They can only reduce staff turnover and internal digestion cost pressures in the staff management."

Yin Xiaoliang said that the cost rose by 10% this year, and 5% of the terminal profits had disappeared.

"The industry has entered the era of integration."

Yin Xiaoliang is worried about the prospect of the electrical appliance industry. "Many enterprises will go bankrupt."

"The hardest time is in the second half."

Mark Ed Faye CEO Yang Kuntian said, "under inflation pressure, we are raising wages for workers, but consumer confidence is insufficient with the price rise, which will bring double pressure on sales and cost for enterprises."