How to deal with the rising price of mold steel and standard component enterprises

Time:

2018-12-10

How to deal with the rising price of mold steel and standard component enterprises

Led by the Standard Parts Committee of the China Mold Association, representatives from 18 major domestic mold standard parts production enterprises and mold steel sales companies recently gathered in Suzhou to reach a consensus on how to cope with the severe situation of high mold steel prices in the current and future period.
According to personnel from Xiongfeng Special Steel Co., Ltd., a supplier of mold steel, due to the higher price of special steel for export compared to the domestic market, coupled with the policy of export value-added tax refund, domestic special steel mills have tilted their sales towards exports. For example, about 60% of the products of Fushun Special Steel are exported, further exacerbating the tense supply-demand relationship. Although steel distributors have already paid 40% of the advance payment to the steel mill five or six months in advance, they often cannot receive the goods as required when picking them up. The price of steel is operating at a high level throughout the line, around 7000 yuan per ton on the 45th, doubling in two years; Molybdenum metal was sold for 800000 yuan per ton, with a nearly tenfold increase in price in two years, and the price of molybdenum steel also increased accordingly.
The various mold standard enterprises that attended the meeting also generally reported that the overall price of steel has increased by 37% in the past year, leading to an increase in the cost of mold standard parts. However, there is not much room for product price increases, which has caused excessive burden on enterprises and difficulties in operation. In response to this situation, many enterprises have taken proactive measures, such as further improving product quality and increasing the qualified rate of finished products; Internally tap into potential and reduce various consumption; Improving services, striving for the understanding and support of the mold companies it supports, and achieving good results.
As for the future trend of steel prices, everyone agrees that with the rapid development of China's economy, resource shortage is a long-term phenomenon that will continue to worsen. In the coming period, the price of high alloy steel will definitely continue to rise, and it is not easy for ordinary steel to fall back in the short term.
In order to cope with the severe situation, the attending representatives also reached a consensus on common measures in the industry: first, adjust product prices appropriately, and increase the original selling price by 10% to 15%; 2、 Suggest setting industry internal guidance prices for key products such as mold frames and push rods; 3、 Properly positioning the enterprise, constantly seeking new ideas and methods, such as developing new products and increasing non-standard products.
Industry experts also pointed out that under the current situation, mold standard parts enterprises should pay more attention to product quality. Only when the product quality improves can they sell at a good price; To determine sales prices based on production capacity, one must have their own scale and cost. Prices are dynamic and vary with changes in the market and one's own production capacity. In addition, it should be recognized that mold standard parts enterprises are not only competitors in the market, but also partners. Only by learning from each other's strengths and weaknesses and jointly cultivating the market can we maintain the long-term interests of the industry and achieve common development.
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