The Machinery Industry Has Been Impacted By The Rising Price Of Steel

- Jul 07, 2017 -

The Machinery Industry Has Been Impacted By The Rising Price of Steel

In recent years, steel price has risen greatly in China, and the steel market has been active for several years.

 

The influence on enterprise are as follows:

1, The machinery industry is affected greatly by the rise in steel prices. Machinery industry has a large consumption of steel, and Some mechanical products can even account for more than 80% steel cost. Because of the rising steel prices, mechanical industrial production costs have increased, and enterprise profit space gradually squeezed.

 

2, The impact of steel prices on the machinery industry is not only a negative factor, but also a good one. Steel prices, labor costs and other costs will gradually rise, and total cost of the enterprise continuously improve. Many enterprises with low R & D capability and low value-added products have been forced to withdraw from the market, which bring opportunity to expand share of those large ones. Enterprises that survive will increase investment in scientific research, continuously improve the quality and technology of products and enhance the industrial competitiveness. From the industry point of view, it is a necessary process to realize high-end products and whole enterprises upgrade.