The Pain Of Rubber Price Increases; &Nbsp; Innovation As A Solution To Enterprises

This year's raw material rose, the birth of the "garlic you ruthless, beans you play, oil it, high sugar" and other new terms.

Zhejiang is a small resource province and a big economic province. This year's doubling commodity futures market has made Zhejiang feel the high cost era of manufacturing industry.

More Zhejiang enterprises have successfully absorbed the cost pressure through technological innovation, reducing costs and enhancing product competitiveness.

For the next year's trend of commodity futures, most futures analysts gave a steady solution.

Rubber futures

China strategy rubber bargain, "attract goods"

From 25805 yuan / ton in April 15th this year to 19955 yuan / ton in June 8th, in November 11th, it once again set a new high of 38320 yuan / ton. This year, the trend of natural rubber is like a large "V", which has fallen rapidly and rebounded more vigorously, and has become a leading commodity futures this year.

Yesterday afternoon, Shen Jinrong, the chief rubber officer of Hangzhou strategy, came back from a business trip. He sat at his desk for a few minutes and looked up at the natural rubber market on the computer screen. He closed 35535 yuan / ton yesterday.

For the top executives of the strategy, they are "almost every minute concerned".

In the first half of this year, CIC decided to have a sudden surge in natural rubber, mobilizing all the funds of the company ahead of time, and eating it at a low price. "We usually get one thousand or two thousand tons of goods, and this time we took more than 50 thousand tons to control the cost of the whole year."

A person at the company's management said that it was precisely because of the accurate judgement of the market that the policy did not even break through 30 thousand yuan / ton in 2010.

Cotton is more vigorous this year than natural rubber.

Before September this year, cotton futures, which had been oscillating in the vicinity of 16000 yuan / ton, began to go wild under the stimulation of production and supply and demand tensions.

In September 13th, cotton futures were only 17180 yuan / ton, and in November 25th it rose to 34250 yuan / ton, and yesterday's closing price was 28105 yuan / ton.

Reporters interviewed in Xinjiang, the main cotton producing area, saw that YOUNGOR, Jie Liya and other large cotton textile enterprises in Zhejiang had set up factories in Xinjiang Akesu, directly purchasing local cotton and processing cotton yarn.

"The company has stocked a lot of cotton last year to effectively digest the cost of rising cotton prices."

Liu Xiaoyu, YOUNGOR's secretaries, told reporters that the company has a subsidiary specializing in cotton reserves, which also benefits the company.

This year, the company started spinning mills in Akesu, mainly because of raw materials and cost considerations.

In addition, although the price of cotton has gone up this year, the gross profit margin of the brand clothing is about 60%, which has a strong bargaining power. With the adoption of new materials and new technology, the price of cotton can be fully digested.

Raw material price per day

Innovation as a strategy for enterprises

Near the end of 2010, the price of natural rubber is still at a high level of 35 thousand yuan / ton. What is the prediction of the cost of next year's rubber, and how to solve the cost pressure? Shen Jinrong said: "we will still adhere to this year's more successful approach."

For example, this year, enterprises invested a lot of money in energy conservation and emission reduction, so that they tasted the sweetness and saved a lot of intermediate fees. In 2011, the strategy will also tap potential in this area.

In the new year, they will continue to analyze the market, pform and upgrade, and make adjustments in the product mix.

"Looking for new sales highlights, high technology products."

He said confidently that such enterprises will be less sensitive to cost and price, just as this year, although the production cost of the strategy has increased, the profits of enterprises have not declined.

"Enhancing brand value can also help reduce the pressure of raw materials."

"The tire developed by our new formula is already running."

Shen Jinrong disclosed that the proportion of synthetic rubber and natural rubber has been studied, and once it is successful, the supply of natural rubber will also be discontinued.

"We do not worry about the market, and we expect sales to reach 26 billion yuan next year."

Shen Jinrong said he was optimistic about 2011.

Rising raw materials are also engulfing the profits made by Zhejiang.

"This year, enterprises really do not do well, the next list, raw materials rise, exchange rate changes, most of them lose money."

Zhou Feng runs a hardware factory in Yongkang, Jinhua, mainly producing gardening tools. He feels that his business is harder to do than the financial crisis in 2008.

He received a foreign trade list in June this year, when the gross profit margin was 8%. As a result, the price of raw materials such as copper, zinc, steel and plastics increased by 2% on the day of signing the contract. The supplier quoted almost one price per day. After 2 months, the goods cabinets not only failed to earn a penny, but lost about 100000 yuan.

A friend of Zhou Feng bought a nonferrous metal plate this year and made more money than he opened a factory.

"It's better to cook raw materials than to make industrial products. How do you say this business is done?" Zhou Feng can't afford to make a hedging in the market if he doesn't have enough capital. He can only take the expedient measure of long, short and short to maintain the operation of the factory.