How to Deal with the Rising Price of Die Steel Standard Parts Enterprises

Leaded by the Standard Parts Committee of China Die and Mold Association, representatives from 18 major domestic die and mould steel manufacturers and sales companies gathered in Suzhou recently to reach a consensus on how to cope with the grim situation of high price operation of die and mould steel at present and in the future.
According to the relevant personnel of Xiongfeng Special Steel Co., Ltd., a supplier of die steel, the price of special steel for export is higher than that of domestic market, and the policy of export VAT refund leads to the inclination of domestic special steel plants to export, such as about 60% of Fushun Special Steel's products, which further aggravates the tense supply-demand relationship. Now, although steel dealers advance 40% of the advance payment to the steel mill five or six months in advance, they often fail to get the goods as required when taking delivery. The price of steel is running at a high level all over the line. No. 45 is about 7,000 yuan per ton, which doubled in two years. Molybdenum metal has been sold to 800,000 yuan per ton, and the price of molybdenum steel has risen nearly 10 times in two years.
The die and mould standard enterprises at the meeting also generally reflected that the steel price has increased by 37% in the past year, which has increased the cost of die and mould standard parts. However, there is little room for product price to rise, resulting in overburdened enterprises and difficulties in operation. In response to this situation, many enterprises have taken positive measures, such as further improving product quality, grasping the qualified rate of finished products; tapping internal potential, reducing various consumption; improving service, striving for the understanding and support of the supporting die enterprises, and so on, with good results.
With regard to the trend of steel price in the future, we all agree that with the rapid development of China's economy, the shortage of resources is a long-term phenomenon, and there will be a growing trend. In the future, the price of high alloy steel will surely rise, and it is not easy for Pugang to fall in the short term.
In order to cope with the severe situation, the participants also reached consensus on the common measures of the industry: first, adjust the price of products appropriately and rise by 10%-15% on the basis of the original sales price; second, recommend the establishment of industry internal guidance prices for key products such as mould shelves and push rods; third, do a good job in positioning enterprises and constantly seek new ideas and methods, such as developing new products and increasing non-standard products.
Industry experts also pointed out that under the current situation, die and mould standard parts enterprises should pay more attention to product quality. Only when product quality improves, can they sell a good price; only if they have their own scale cost, can they fix the selling price according to production capacity. The price is dynamic and changes with the market and their own production capacity. In addition, we should realize that the enterprises of standard parts of die and mould are not only competitors in the market, but also partners. Only by learning from each other and cultivating the market together, can we safeguard the long-term interests of the industry and achieve common development.