Recently, the price rise of some raw materials in China’s industrial sector has aroused widespread concern. In August, the scrap market started the “price increase mode”, and the scrap prices in Guangdong, Zhejiang and other places increased by nearly 20% compared with the beginning of the year; Chemical fiber raw materials soared, and downstream textiles were forced to raise prices; There are more than 10 provinces and cities where cement enterprises have announced price increases.
The price of rebar once exceeded 6000 yuan / ton, with the highest increase of more than 40% in the year; In the first five months of this year, the average spot price of domestic copper exceeded 65000 yuan / ton, up 49.1% year-on-year. Since the beginning of this year, the sharp rise in commodity prices has pushed PPI (Industrial producer price index) up 9.0% year-on-year, a new high since 2008.
According to the data recently released by the National Bureau of statistics, from January to May this year, China’s Industrial Enterprises above Designated Size achieved a total profit of 3424.74 billion yuan, an increase of 83.4% over the same period last year, among which upstream enterprises such as non-ferrous metals made outstanding contributions. By industry, the total profit of nonferrous metal smelting and rolling industry increased by 3.87 times, ferrous metal smelting and rolling industry increased by 3.77 times, oil and gas exploitation industry increased by 2.73 times, chemical raw materials and chemical products manufacturing industry increased by 2.11 times, and coal mining and washing industry increased by 1.09 times.
What are the reasons for the price increase of raw materials? How big is the impact? How to deal with it?
Li Yan, researcher of the Industrial Economic Research Department of the development research center of the State Council: “from the perspective of the supply side, some low-end and backward production capacity which are not up to the standard of environmental protection have been eliminated, and the short-term demand is generally stable. It can be said that the change of supply and demand structure has led to the rise of raw material prices to a certain extent. Under the mechanism of high-quality development requirements, the high-quality production capacity that meets the standard may not meet the current demand for a while, and the relatively low-end enterprises also have the process of technological transformation to meet the environmental quality requirements. So the price rise is mainly a short-term change in the supply and demand situation. ”
Liu Ge, financial commentator of CCTV: “in the iron and steel industry, steel scrap belongs to short process steelmaking. Compared with long process steelmaking, starting from iron ore, to blast furnace ironmaking, and then to open hearth steelmaking, it can save a large part of the previous process, so that iron ore is not used, coal is reduced, and carbon dioxide and solid waste are greatly reduced. For some enterprises, in the face of environmental constraints, using scrap iron and steel can solve this problem, so many enterprises are very positive. This is also the main reason for the rise in scrap prices in recent years. ”
The high commodity prices and the sharp rise of raw material prices are one of the prominent contradictions facing the economic operation this year. At present, the relevant departments have taken a series of measures to ensure supply and price stability, and downstream enterprises are also actively controlling costs and reducing pressure by means of hedging, long-term strategic cooperation and industrial chain allocation.
Post time: Jul-08-2021