Trade Risk Alert
Release time:
2021-06-29 17:48
Source:
The short-term increase has an impact on the operation.
"According to the company's internal statistics, since January this year, the price of steel has increased by about 65%. In terms of other metal raw materials, copper has increased by about 62%, and aluminum has increased by about 40%." Zhejiang Wanan Technology Co., Ltd. (hereinafter referred to as "Wanan Technology") Board Secretary Li Jianlin told reporters.
"The increase in the price of metal raw materials is mainly reflected in steel plates and aluminum materials. The impact on our business is obvious, and both domestic and overseas markets are affected." Mr. Zhang, who works for a large domestic auto parts group, said.
Tian Guozhu, general manager of ASINCO International Foundry (Shanxi) Co., Ltd. (hereinafter referred to as "ASINCO Shanxi"), said: "This wave of metal raw material prices this year, the range is about 30%. As the cost of metal raw materials accounts for more than half of the overall cost of the company's products, we really can't hide."
"We produce high value-added products with technology, and the cost of raw materials accounts for about 20%." Mr. Li, the person in charge of a foundry enterprise, told reporters, "In the first half of this year, the price of metal raw materials continued to rise, compared with last year's average, the increase reached 50% to 60%, and the purchase price rose by 1500 yuan/ton. Even if the raw material price rise cycle from 2008 to 2010 is not as good as the increase achieved in a short period of time."
"For the transmission industry, we are affected by the other auto parts segments of the industry is basically the same. This wave of metal raw material prices 'menacing', the fastest rising stage is this year 3 to May. From the member units of the bottom line, steel rose 1200 to 1300 yuan/ton, or 20% to 25%, individual metal raw materials or even up to 30%." China Automotive Automatic Transmission Innovation Alliance, China Europe Association Gear Transmission Industry Branch Secretary-General Li Shenghe told reporters, "metal raw materials in the transmission material accounted for a relatively high, regardless of gears, bearings, housing, more than 90% of the main material is metal materials. Therefore, this round of metal raw material prices, for the transmission industry has a greater impact."
"In the company's iron subframe products, raw material costs account for about 60% to 70%, aluminum alloy subframe products, raw material costs account for about 50%. Our preliminary estimates, the impact of this round of metal raw material price increases on the product, reflected in the iron subframe products, the cost increase of about 10% to 15%, aluminum alloy subframe product cost increase of 15% to 20%." Li Jianlin said, "Another type of product that we sell well-commercial vehicle air brake systems is also affected by the price increase of aluminum."
"The metal raw materials prices quickly, beyond our expectations." Li Jianlin said with emotion, "this has brought a lot of tests to the production and operation of enterprises. The rise in the price of raw materials will lead to the increase of product costs, thus reducing the profit space, and will also affect the capital investment of enterprises in other aspects. At the same time, it also puts forward certain challenges to cash flow. Thanks to the company's continuous promotion of market upgrading in recent years, our customer structure has been continuously optimized, most of which are well-known enterprises at home and abroad, and the payment is guaranteed. (this wave of price increases) has little impact on cash flow." (Source China Auto News)
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Other dynamics
The company was founded in 1997, currently 4000 a variety of models of automobile brake discs. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting. The company's process equipment strength, Japan's new east automatic casting line 6, commercial vehicle brake disc automatic casting line 2. There are 56 processing lines -6 full-automatic one-word processing lines and 30 robot processing lines. Packaging cleaning line 5, spraying line 3.
Since the beginning of this year, the price of raw materials has risen sharply, sea freight has soared, and the difficulty of finding a box of shipping space has seriously plagued manufacturing companies. The current power curtailment has made companies even worse. Take our company as an example. Since the power limit in early September, the company's production capacity has dropped by about 50% on average every day. Exports have decreased by 0.02 billion yuan. The performance rate of orders in hand is about 50%. New orders were reduced by 10%. These data are the impact of the current power rationing on enterprises. If the power rationing situation is not alleviated, the impact on enterprises in the fourth quarter will be more serious.
Recently, Yunnan, Jiangsu, Qinghai, Ningxia, Guangxi, Guangdong, Sichuan, Henan, Chongqing, Inner Mongolia, Henan and other places have begun to carry out energy control measures to limit energy consumption.
The total power generation in 021 is not low. In the first half of the year, China's total power generation was 3871.7 billion kWh, twice that of the United States. At the same time, China's foreign trade has grown extremely fast this year. According to data recently released by the General Administration of Customs, in August, the total value of my country's foreign trade imports and exports was 3.43 trillion billion yuan, a year-on-year increase of 18.9 percent, achieving positive year-on-year growth for 15 consecutive months, further showing a steady and solid trend. In the first eight months, the total value of China's foreign trade imports and exports was 24.78 trillion billion yuan, up 23.7 percent year-on-year and 22.8 percent over the same period in 2019.
The impact of the neo-coronary pneumonia epidemic on global supply chains continues, with high international freight rates, container shortages and terminal congestion still unabated, and labor shortages exacerbating the dilemma. The outbreak of the new coronary pneumonia epidemic in 2020, due to the obstruction of international freight, soaring transportation costs, international trade in goods greatly hindered, triggering a supply chain crisis in many countries (regions), since 2021, the new coronary pneumonia virus variant strain raging, so that the supply chain has not yet fully recovered.
Statistics from the China Association of Automobile Manufacturers show that in the first seven months of 2021, China's cumulative automobile exports reached 1.002 million, an increase of 1.2 times year-on-year, but the month-on-month growth was only 9.8 percent, showing a shrinking trend. Moreover, commercial vehicle exports fell 11.6 percent month-on-month, of which new energy commercial vehicle exports fell 57.8 percent month-on-month. It is said that the main reason for the decline in automobile exports is the poor shipping channels.
Product recommend
At present, 4000 a variety of models of automobile brake discs, brake drums with an annual output of 10 million pieces. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting.
At present, 4000 a variety of models of automobile brake discs. Products are mainly exported to Europe, North America, South America, Australia and other countries and regions. At present to SAIC, JAC, BYD, Jinlong, Yutong and other domestic models to provide supporting.
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