Rubber Machinery Industry Has Been Opening Years Of Head

This year, China’s rubber machinery industry at the end of the year have been completed task orders for the excellent situation, this hot last year, the undertaking market, various economic indicators higher level. However, the sharp rise in raw material prices beginning to the rubber machinery business head with a stick, a considerable number of rubber machinery business profits were significantly decreased in the Yi Eryue, and some even a certain degree of loss. According to the China Chemical Equipment Association, rubber machinery special committee to statistics, since the prices of raw materials, rubber machinery industry will increase the cost reduction 3 billion yuan, almost with the industry quite a profit last year.

In recent years, China’s tire industry’s development of rubber machinery and formed a “blowout” type of demand, so the rubber machinery industry, a rare seller’s market emerged, most of the task full rubber machinery production, the product in short supply, orders for the second year in general had been signed over the previous year. The same is true of this year, orders had been in the last year or this year’s annual attendance. However, the beginning of steel and other raw materials prices had not anticipated the sharp rise, such as iron ore rose 65% from the second quarter of Baosteel announced that a further increase of steel per ton 500 ~ 800 yuan / ton, which made rubber machinery business suffered bear Introduction. Advance signing this year’s orders of the rubber machinery business was originally a good thing, but it has now become a heavy burden.

It is reported that 10% of rising costs in the steel case, if the rubber machinery companies can not afford the cost of transfer, the gross profit margin will decline about 5% net profit margin will decline about 3%. Therefore, if no measures are taken, the domestic industry’s heavy losses will occur.

Rubber machinery mainly the cost of steel, steel accounted for vulcanizing machine 50% of the total procurement cost of about, in other rubber machinery accounted for around 40%. So it comes as prices of raw materials for curing machine manufacturing enterprises most affected. It is understood that, Guilin Rubber Machinery Factory and the China oak Controls Inc. contract amount of vulcanizing machines are in 4 billion yuan, Dalian Rubber & Plastics Co., Ltd. has signed a 4.5 billion contract rubber machinery. Measured at current prices of steel products, Guilin Rubber Machinery Factory 12 quarter vulcanizing machine, such as the implementation of the contract price, its gross profit margin of 5% or less universal, some orders for gross margin has been negative. In addition, the molding, rubber mixing, extrusion and other equipment have greater impact on some rubber machinery business due to lower gross margins in itself, together with factors such as tire companies Zhibao Jin delayed, it is difficult to ensure the normal operation of the production.

It is understood that part of the company is working with the tire rubber machinery business to discuss amendments to the contract, a number of business-to-rubber machine tire price increase understanding. Rubber machinery Li Dongping, director of special committees that the rubber machinery enterprises must fully understand the rising raw material prices impact on the industry the seriousness of, and early action, different companies according to their characteristics and the actual situation, focus from the business-to-steel dependence, equipment needs, the cost of the transfer of capacity, energy saving and so on analysis, development of materials suited to their procurement, investment in equipment, product marketing, strategy and planning.

In addition, the RMB appreciation, the growth in lending rates also directly affect the rubber machinery business profits. Just over a year, the RMB appreciation and respect of over 10% rise diminished, directly affects the momentum of China’s rubber machinery exports and profits. By 6% by this year’s total appreciation of the renminbi, China’s rubber machinery exports 100 million U.S. dollars, will affect the rubber machinery business profits of about 40 million yuan. In addition, the state of tightening monetary policy may affect China’s fast-growing tire industry investment, thereby affecting the demand for rubber machinery, rubber machinery companies this point must also pay attention to.

Rubber Machinery Industry Has Been Opening Years Of Head