Price Raising in Raw Materials to Reappear

Price raising in raw materials to reappear.

Price raising in raw materials made manufacturing concern miserable, Especially export manufacturing enterprises, For most of them, Those raw material prices before the signing of the order, and now has become a nightmare, according to about a order doomed to lose money. But the temporary price increases not only breach of contract and customers may not be willing, The export manufacturing industry faces a dilemma in the price of raw materials. Chinanews. com reported.

For the last two months, Industrial manufactures by the upstream and downstream industry chain manufacturers double attack, coal, iron and steel, paper and other production materials prices continue to increase, and transport costs to increase, environmental protection limit production to add fuel to the flames. Surge in costs, Surge in costs, so forced by excess capacity and domestic consumption downturn and had to cut sales promotion of the manufacturer, can only further reduce corporate profits. The same situation for foreign trade enterprises, the difficulties may be more difficult to get rid of.

In China, most of the export business is still through the traditional OEM model for production orders. The homogenization of this model phenomenon, so that these companies in the face of overseas brands to bargain at a disadvantage when, despite rising business costs, but it is difficult to transfer costs to the ex-factory price, companies can only be in the ” rise in price but not lose the order “spirit of hard to spend.

This year, including iron and steel, glass, plastic and other household appliances production of raw materials prices have risen significantly, even up to 40% stainless steel, many companies don’t lose a order, almost at a loss in doing, but fairly timely response, some manufacturers are now appropriate Of the raw materials have been purchased, it is difficult to finished goods.

This price adjustment, The first impact of the lack of independent brands of OEM companies seem to sound the alarm for the enterprise: The past few decades, low manufacturing costs to “Made in China” to lead China’s foreign trade in the forefront of the world’s dividends are gradually disappearing, With the Southeast Asian countries in the low manufacturing prices of materials, labor costs, the advantages of preferential taxation more and more obvious, relying on traditional OEM mode of export business challenges facing more and more manufacturing enterprises to upgrade the trend has been upgraded As inevitable.

More information focus on: http://www.metal.com/