The Shoe Machine And Other Enterprises Encounter The Price Of Steel Price Increase

The manufacturing industry has been deeply involved. It is understood that this year, the builders of steel prices are very tired, and Mr. Zhou is not a special case.

Another building contractor in Guangzhou, Huang, told reporters that according to the Ministry of construction's "management of construction contracting and contract pricing", there are three ways to contract the construction contract price: fixed price (unit price or unit price within the scope of the contract risk can not be adjusted), adjustable price (the contract price stipulated in the contract is adjusted with the price change during the implementation), and the price determined by the project cost plus remuneration.

Mr. Huang signed a project contract last year to calculate the price of the project cost plus remuneration, and the material cost was settled in real terms, so the soaring steel price had no effect on him.

"Those who have contracted projects at fixed prices are at a much greater risk. As far as I know, many of them are losing money."

A Real Estate Company official also said that before last year, most developers and construction units signed the "list quotation" contract. The tenderee provided the bidder with a detailed list of the quantities of the tender project, and the bidder organized the quotation according to the bill of quantities and the requirements of the tender documents and the enterprise's own conditions, that is, the fixed price, and the risk of the material price increase was basically borne by the constructor.

However, this year, the construction side generally asked for the increase in price. At the same time, it was more reluctant to adopt the "list quotation".

In fact, soaring steel prices are not limited to builders and real estate companies.

Machinery manufacturing, household appliances, shipbuilding and other industries also suffer.

The person in charge of a large equipment manufacturing enterprise told reporters that the characteristics of this industry are similar to that of the construction industry. They all signed the pricing contract ahead of time, then ordered the production, and the production period was relatively long.

Most of the supply contracts of the company were signed at the end of 2006 and early 2007 according to the market price level at that time, and the performance, production and supply were basically in 2008.

The rise in steel prices has caused serious economic losses to them. They can not pass on the cost to raise the cost. The dilemma they face is generally the same as that of builders.

So, in the face of such a situation, if enterprises do not want to eat dumb, where to go?

A person in charge of a company thinks that there are usually only two choices: one is Jerry building, or looking for material with high quality and high price, substitutes, and trying to pass on the crisis. The other is to choose a breach of contract and terminate the supply contract, so as to "protect oneself".

But either way, it will greatly affect the market reputation of enterprises.

Household electrical appliance enterprises are scared to death. "Last year, our sales volume has increased, but the growth has slowed down significantly compared with the previous years."

Ms. Zhou, director of Zhongshan appliance and private enterprises, told reporters that she was rather helpless about the result.

"There is no statistical data on the rising cost of raw materials, but steel accounts for a large share of raw materials in our enterprises. This year's cost has risen from 5000 yuan / ton to 7000 yuan / ton, and the increase has reached 40%."

The household appliances produced by this company occupy a larger share in the domestic and foreign markets, but the fast growing trend has changed because of the rise in prices of raw materials, the reduction of export tax rebates and the appreciation of the renminbi.

Because of the rise in steel prices, home appliance enterprises have been having a hard time.

"Our enterprises need more steel varieties, so they are getting goods from the intermediary enterprises of steel products - Steel monopoly companies. We can not get goods directly from steel mills."

It is understood that most of the household electrical appliance enterprises adopt such a way to get goods from the exclusive steel companies. Only a very large number of large steel enterprises can get special services from the steel mills. The steel mills will send people to large enterprises to collect the demand of steel for enterprises and make the necessary steel for the enterprises.

From the steel monopoly company, the price is naturally higher than that from the steel mill.

However, even if the price of goods is relatively high, the current household appliance enterprises must take the cash on delivery method from the steel monopoly company, and in the past, when the price of steel is not high, most of them have certain accounts.

At present, in addition to the impact of steel price increase on enterprises, she gave reporters another account. "Last year, the export tax rebate increased to 8% of the cost of enterprises, and the appreciation of the renminbi increased by 5%.

There are 35 points to be set aside for the increase of raw materials.

After the rise of cost, the household appliance enterprises which had already made a slight profit are getting increasingly sad.

For them, they can only find new ways out.

Household electrical appliance enterprises are faced with terminal consumers. They can not pfer the cost to the downstream enterprises such as the machinery manufacturing industry. There are only two ways to go: to digest their own cost or raise their prices.

The most direct way is to raise prices.

"Many of our products have to raise prices this year."

The above told reporters, but the consequences of the price increase began to reduce sales.

After all, China's manufacturing market is a fully competitive market. Raising prices means weakening competitiveness and being caught up by competitors.

The competition of the household electrical appliance industry is on the scale. Once the price increases, the price of the household appliances will be reduced and the market share will decline.

Market share or profit?

For Chinese household electrical appliance enterprises in a fully competitive market, raising prices is a matter of finding a death. Not raising the price is waiting for death. This is a dilemma.

In fact, although it is already in the summer, the sales of refrigerators and air conditioners are not good and the bargaining power is weak this year because of the cooler climate. In this market situation, it is difficult for the household appliance industry to pfer the cost to consumers through the increase in prices. Most enterprises can only choose the way of self digestion to resolve the cost pressure of the price rise of steel products.

Therefore, the pressure of home appliance enterprises this year is very great.

Ms. Zhou said that the measures taken by the company were three aspects: first, the establishment of the procurement department; the enterprise was previously purchased by several factories, and now it was purchased separately to achieve scale effect; in addition, as far as possible, no reduction in quality was made, the imported steel products from the original enterprises were further converted to domestic steel, that is, procurement localization, and the cost of imports was reduced; third, the structure of the products was adjusted, and the grade of household appliances was generally increased. The high-end products were relatively high in profits because of the high added value, and now the main energy was pferred to high-end products.

Low profit products without profit can be eliminated.

Zhu Lijun, an electrical appliance industry analyst at Galaxy Securities, said in an interview with reporters that the appliance industry inevitably has to be affected by the increase in steel profits.

But this influence is also different. In the household electrical appliance enterprises, the life cycle of white household appliances (such as washing machines, refrigerators, etc.) that can replace people's household products, such as washing machines, fridges, etc., is long, so many of the competition is concentrated on the brand.

He believes that the future competition of traditional household appliances such as air conditioners and refrigerators is mainly focused on the competition of scale and brand.

Independent brand automobile company pressure big Zhongtai automobile official said that this year, the price of iron ore has already brought great pressure to the domestic automobile enterprises, and the pressure on the independent brands with relatively low profit margins is greater.

Upgrading the emission standards, upgrading the power system and installing OBD make the cost of each vehicle increase by about 5000 yuan. The manufacturers have been unable to bear it alone and have to raise the price.

Geely Automobile official said that the rise in iron ore and oil prices had a great impact on Geely.

At present, Geely is able to control costs by reducing the cost of material consumption and other internal cost control measures.

Wang Jianjun, manager of BYD public relations, also told reporters that steel is one of the most important raw materials for automobiles, and its price increase has a greater impact on the cost increase of enterprises.

It is understood that the supply of Wugang automobile panels in BYD has reached 10000 tons / month, and 80% of BYD steel is supplied by WISCO.

"Not only is steel, but also the price of other raw materials is rising, and from the raw materials of cars, BYD's purchase price has risen by 90%."

Wang Jianjun said.

As a domestic independent R & D, independent brand and autonomous development vehicle, BYD motor price has attracted much media attention because of its low price. In fact, the price increase of independent brand cars will undoubtedly be regarded as a crazy act to abandon the market.

Wang Jianjun said that enterprises have reserved certain profit margins, and now they can do some cost control through cooperation with the upstream and downstream cooperation teams.

The industry believes that the automobile industry may face a new shuffle.

It is understood that iron ore prices rose by more than 80%, will lead to loss of 4% of the profits of the automotive industry, and for the current sale of "cabbage prices" of the car, some car dealers may be eliminated in the storm.

Steel enterprises bear 800 billion heavy loads. According to the statistics released by the China Iron and Steel Industry Association, in 2007, China's large and medium-sized steel production enterprises achieved sales revenue of nearly 2 trillion yuan, and from January 2008, steel prices continued to rise, the cumulative growth rate exceeded 40%, which means that this year, China's large and medium-sized steel production enterprises will achieve 800 billion yuan of sales revenue than last year.

In fact, the sales revenue of iron and steel enterprises is the purchasing cost of downstream steel enterprises.

That is to say, downstream steel companies will have to bear more than 800 billion yuan of steel costs this year.

For cars, appliances, machinery and building materials and other downstream steel users, the price increase will no doubt be regarded as a crazy act of giving up the market.

Judging from the current market situation, most downstream steel companies will focus on digesting the marketing pressure brought about by rising costs, especially those with relatively more competitive competition such as automobiles and home appliances.

In the construction industry, although the construction side has a certain say in bargaining, the cost of raw materials increases is mostly borne by them, and a small part is passed to the real estate developers.

Clever use of futures can evade risks. When steel prices rise, do downstream steel companies really have no alternative?

The experience of Mr. Zhou, the general contractor of the construction contractor, may give some inspiration to the enterprise.

In the aforementioned litigation, Mr. Zhou asked the employer to increase the amount of the project because the price of the raw materials had increased, and the construction cost had exceeded the project cost.

But the reason for the other party's Refutation is that when the general contractor is signing a major contract, he should take into account the risk of fluctuation in raw material prices. He should avoid risks by buying futures, and Mr. Zhou did not do so, so the responsibility lies with the contractor.

Can futures purchase become an effective way to avoid the risk of contract risks?

Insiders say that hedging in futures pactions refers to the futures market as a place to pfer price risk, using futures contracts as temporary alternatives to buy and sell goods in the spot market in the future, to sell commodities after they are ready to buy, or to trade insurance on the prices of goods that need to be bought in the future.

For the downstream enterprises of the steel industry, the risk of frequent changes in raw material prices is unavoidable. When operators are concerned about the rise in steel prices, they can use the futures market to carry out comprehensive hedging, that is to say, the purchase of metal raw materials to be purchased will be hedged, thereby eliminating worries and avoiding possible price risks.

We assume that in January 2007, a builder signed a contract. According to the estimation of the progress of the project, it was necessary to buy 1000 tons of rebar in January 2008.

In January 2007, the price of steel was 3000 yuan / ton. Because the price of steel increased after 12 months, the builder made hedging pactions in the futures market: he bought 200 futures contracts in January 2008, and the price was 3000 yuan / ton; in January 2008, the builder bought 1000 tons of rebar at the spot price of 4700 yuan / ton, and sold the futures contract 200 hand in the same month, the price was 4700 yuan / ton.

The builder is able to balance the profits and losses by hedging effectively.