High raw materials land micro, small and medium enterprises: give business can not afford to do -Struggling in front of raw material price hikes

The general price increase of raw materials makes mainland SMEs struggle.

Mainland raw material price increases led to the survival of mainland enterprises difficult, especially small and medium-sized micro enterprises. Some business owners lamented that the more you do, the more you lose money, and now give business can not do.

Mainland raw materials have risen almost across the board, and according to China Business Towers, since July last year, prices of gypsum board, plates, pipes, wires, commercial concrete (concrete) and light steel keel used in the construction and decoration industry have risen without exception, and more than once. Mr. Wang, the person in charge of a decoration company in Hangzhou, said that he signed with customers in the year before the single, could have earned 10%, but now all the material price increases, the cost can not be recovered, the loss can only be borne by themselves.

The main raw materials used in the edible oil industry soybean oil and vegetable oil from the second half of last year prices are doubling, soybean oil from last year the lowest 4,000 yuan (RMB, the same below) / ton up to nearly 10,000 yuan / ton in April; vegetable oil in May-June last year, the lowest price of 7,000 yuan / ton, has now also risen to about 12,000 yuan / ton.

The cows in a farm in Qiqihar, Heilongjiang, eat the same feed every day, but the owner has to pay 10 yuan more for a cow’s meal every day.

An enterprise in Dongguan, which produces 500 million cans a year, started work this year and found that the unit price of iron for production rose from more than 5,000 yuan/ton to more than 9,000 yuan/ton.

According to the Securities Times, as of March this year, 57 kinds of major commodities, 30 kinds of commodities rose more than 10%, crude oil, polymeric MDI, broadleaf rubber and other 11 kinds of commodities rose more than 30%, pure benzene rose more than 50% during the year, the price of copper, which is widely used in industry, from 35,000 yuan / ton in March 2020, once exceeded 70,000 yuan / ton, a record A new high.

An appliance industry source said, “This is the most unusual price increase in the last decade or so!”

Spot so, futures are also rising, according to the mainland e company reported on May 10, the mainland futures market plate, iron ore, rebar, hot-rolled coil rose one after another, since this year, the mainland has 20 varieties of futures rose more than 20%, of which 10 varieties rose more than 30%, respectively, styrene, glass, hot coil, rebar, iron ore, power coal, crude oil, PVC and Shanghai aluminum.

The price of raw materials has made mainland small and medium-sized enterprises struggle and struggle.

The report said that in April, the head of a deep glass processing company in Guangdong revealed that glass prices rose from a minimum of 1,200 yuan/ton in 2020 to more than 2,400 yuan/ton, and many fewer customers placed orders, originally spring and summer is the peak season for glass sales, but this year the factory is cold and clear.

More companies are choosing to take the initiative to cut production capacity, there is a single also do not accept. Because it is difficult to absorb the pressure of rising raw materials alone, some small and medium-sized enterprises can only sell a limited number of customers to 1000 pieces of goods, only 100 pieces of goods sent.

Some business owners said: “The price of raw materials soared, has received the basic orders are losing money, is now in the hard to carry, new orders are afraid to take.”

Raw material prices have been transmitted to some of the downstream commodities. Since March this year, TCL, Hisense, the United States, Zhigao and other home appliance companies, the off-season in the home appliance industry announced a collective price increase, ranging from 10%-15%. Edible oil, tires, paper towels are the whole line of price increases.

In the face of rising raw materials, large enterprises can increase the price of goods, but small businesses mentioned price increases may face the pressure of elimination. The head of an edible oil manufacturer said, “I dare not raise prices too much, the result of price increases is a decline in demand, which is equivalent to giving up market share to competitors.”

According to reports, the orders that small and medium-sized enterprises are afraid to take are likely to flow to the head enterprises. These head enterprises have more bargaining power in front of the upstream raw material distributors, there are also some head enterprises with their own strength and scale can sign long-term price agreements with suppliers to reduce the impact of rising raw material prices.

But the risk resistance of small and medium-sized enterprises is weak, but also in the financing, public resource sharing, social concerns and other aspects of the marginal end, a large market fluctuations and risks, small and medium-sized enterprises are often the first to bleed, and the least likely to be replenished.

An analyst said in this regard, “Every time when there are huge fluctuations in commodities, it is the time for big manufacturers to make a big market share.”