The Motor Industry Set Off A Wave Of Price Increases

- Nov 24, 2018-

The motor industry set off a wave of price increases

In terms of industrial production, the focus of the inspection in July-August is: whether the localities will complete the discharge permit issuance before the end of June; the installation, networking and operation of the "high-rise source" automatic monitoring equipment; the discharge of industrial pollution sources. The focus of the September inspection was: before the end of September, special emission limits were imposed on sulphur dioxide, nitrogen oxides and particulate matter atmospheric pollutants emitted by all coal-fired boilers in the urban administrative area. After October, the focus of the inspection is: 10 steam tons and below coal-fired boilers, as well as the completion of the work of the small stoves and operating small coal stoves before the end of October; the emission of sulfur dioxide, nitrogen oxides and particulate matter from coal-fired boilers Special emission limit conditions; discharge of permits for the discharge of pollutants in industries such as steel and cement; discharge of industrial pollution sources up to standard.

Under the high pressure of this round of environmental protection storm, it will inevitably lead to further compression of production capacity. A new wave of price increases has quietly opened. It is understood that the prices of products in textile, electromechanical, packaging and other fields have continued to rise.

In the motor industry, with the further deepening of environmental rectification, the main raw materials of the motor, silicon steel sheet, electrolytic copper, castings, aluminum ingots, round steel, etc. have soared, coupled with the continuous increase in labor costs, manufacturing costs and transportation costs, resulting in motor products. The negative profit phenomenon of manufacturing is serious, and many motor companies have no choice but to adjust prices. Moreover, most of these enterprises are small and medium-sized enterprises. They have problems of shortage of funds and poor anti-risk ability. In the past two years, under the background of de-capacity and supply-side reform, they have become the targets of capacity reduction. Now, under the wave of the environmental protection banner, many of these SMEs are facing a situation of shutting down due to the lack of money to purchase environmental protection devices, or some aspects that do not meet the requirements.

With the deepening of environmental protection and rectification work, many enterprises in the deep processing, casting, and motor industries will stop production in advance due to environmental protection problems. In addition, last year, the country rectified the steel industry, and the production capacity caused a sharp increase in prices. From the end of last year to May this year, The price of steel has risen by 60-70%, and steel prices have remained high, causing the price of motor products to rise. In addition, the phenomenon of large price hikes in raw materials, especially for the motor industry, which is made of silicon steel, cast iron, copper, aluminum alloy, rare earth, etc., can not be underestimated. It is estimated that the cost of the motor will be affected by the price of materials. Around %, coupled with the promotion of transportation costs and labor costs, the growth rate of the overall machine cost will be more obvious.


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