Since the beginning of this year, the domestic steel market prices have continued to rise, which has brought significant pressure on the manufacturing industry to increase costs.
However, Ge Xin, a researcher at the Lange Steel Research Center, analyzed by China Business News that as a large manufacturing country, many industries in China are facing the pressure of rising raw material costs. However, from the perspective of the main steel manufacturing industries, the automobile, home appliances, and machinery industries are the first A round of cost increase transmission has been completed. With the continuous correction of steel prices, the cost pressure of manufacturing companies will gradually ease, and the price increase of downstream end products will slow down.
In recent months, the sharp rise in the prices of raw materials and other commodities has aroused great attention from the regulators. In May, after the State Council’s executive meeting “named” the price increase of bulk commodities three times, the National Development and Reform Commission and other departments adopted various measures such as maintaining supply and stabilizing prices to curb unreasonable increases in bulk commodity prices.
Hongta Securities pointed out that the unanimous expectation of a unilateral increase in commodity prices has been broken, and the regulatory authorities have been emphasizing the need to control the prices of commodities. In this context, the rise in raw material prices has caused the midstream and downstream enterprises and small and micro enterprises to The pressure may be eased, and the profit margins of enterprises, especially mid- and downstream enterprises, may usher in a rebound.
It is worth mentioning that, in the face of rising raw materials, some companies have begun to turn current pressures into motivation, accelerate the pace of innovation and transformation, and resolve high costs by adding high value-added products to find a way out of the predicament.
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