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Fastener industry raw material prices led to reduced profits by na b
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Fastener industry raw material prices led to reduced profits by NA B
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| Article Posted: 05/29/2011 |
| Article Views: 82 |
| Articles Written: 2638 - MORE ARTICLES FROM THIS AUTHOR |
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Fastener industry raw material prices led to reduced profits |
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Business,Business News,Business Opportunities
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China Bearing Industry Association, according to statistics, the months of this year, 1,2 the industry key enterprises realized main business income rose 20.71%, but profits fell by 10.91%.
In the April 9 meeting of the Association of Chinese-axis "to lower costs, higher raw-material prices Seminar on" on-axis co-chairman Zhang fawn all of that, "Although a quarter of the bearing industry is running on the whole remains a relatively rapid growth, but a sharp rise in prices of raw materials and other means of production, materials, labor costs increase, bearing both upstream and downstream enterprises are facing a double squeeze the market, running more difficult, increase business risks. "
Compression profit multiple factors
Into 2008, the bearings industry is almost in the midst of raw materials, "up" was spent.
Reported that as of 3 at the end of a diameter of 50mm non-annealed hot-rolled steel bearings average price in 6450 yuan / ton, 100mm diameter, the molded material annealed average price in 7940 yuan / ton, compared with 2 are up 400 yuan at the end of / tons. In fact, the sharp rise in steel prices from the end of the year 2007, had first emerged, and from the second quarter, demand for steel market will usher in the peak season, is expected to bearing steel prices will remain high up.
Addition to steel other than the production of bearings on the demand for very large non-ferrous metals. Qilu Securities analyst Li Li non-ferrous metals that "as far from mine output growth and consumer market growth, coupled with global price increases for other commodities on the substitution effect is difficult to show non-ferrous metals, non-ferrous metal prices in 2008 is expected to continue high level. "This is undoubtedly worse bearing enterprises.
A survey shows that although China has become the largest producer of bearings, but the scale of China's largest bearing company only U.S. TORRINGTON (Torrington bearings, Timken now part of the United States TIMKEN bearing) of 8.5%, Switzerland 1.7 SKF %. From this, the Chinese bearing industry groups are small and medium enterprises to participate in international competition. For export-oriented small and medium sized bearing enterprises, the impact of the RMB exchange rate as much as raw material prices.
First, the RMB appreciation is the most direct impact enterprises export prices relative to prices which means competitive advantage of Chinese products dropped. Second, the export enterprises will be subject to export earnings when converted into yuan exchange losses, as a result of reduced export losses. Meanwhile, the RMB appreciation will also lead to increased labor costs and other production costs, export dependence on the impact of large bearing company will be difficult to avoid, in particular, will seriously affect those who win at low prices, low-tech exports.
"2008 first quarter, ZWZ to achieve an average monthly income of 200 million yuan of sales increase, up 40%. However, only the wages of an employee, this year will increase about 20 million yuan, plus the export tax rebate rate adjustment, ZWZ cost this year is expected to increase more than 200 million yuan. "shares management of Bearing Ji-yuan, said the Minister. I am China Chemicals Products writer, reports some information about custom drill bits , oilfield drill bit.
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