The cost of manufacturing has increased

Wu Qiming, the textile mill owner who is still in the semi-fake state, has recently been a bad person.
In July, when orders were scarce and there was no need to catch up with production, Wu Qiming briefly closed a part of the production line and let the workers and machines take a break to prepare for the next busy season. However, at the end of July, several major spandex factories issued announcements, announcing that the price of spandex rose by 1,000 yuan/ton from August 1.
The good days of order recovery and production acceleration are only half a year, which is another rise in textile raw materials. Despite the recent decline in yarn prices, CITIC's data show that in the first half of this year, the average price of the four yarns rose by at least 14.06%, while the category with the most price adjustment rose by 23.15%.
"Now we can't talk about profits. The rise in raw materials has basically flattened profits." Wu Qiming told the reporter of China Times.
In fact, the rise in the price of production materials is the norm in recent months. In July 2017, the national industrial producers' ex-factory price (PPI) rose by 5.5% year-on-year; industrial producers' purchase prices rose by 7.0% year-on-year. From January to July, the average ex-factory price of industrial producers rose by 6.4% year-on-year, and the purchase price of industrial producers rose by 8.5%.
On the other hand, although the price of PVC rose in August, it did not resist the heat of plastic machinery manufacturing in China. According to the latest statistics of China Plastics Machinery Industry Association, due to the favorable policy influence and the adjustment of industrial structure, China's plastic machine industry continues to improve and maintains rapid growth. Many enterprises' demand for orders has increased significantly, even after one year, the demand exceeds supply. .
On the one hand, it is the “low season” of machinery, and the other side is “unprofitable” for textile enterprises. The low season of the traditional manufacturing industry in July, accompanied by high temperatures, is the unevenness of the real economy.

The price of raw materials for ice and fire is increasing, and it also affects the plastic machinery industry.
However, although the price of PVC, the main raw material for plastics, has risen all the way in July, it has not put pressure on the plastic machinery industry.
According to the statistics of China Plastics Machinery Industry Association, in the first half of 2017, the main business income of China's plastic machinery manufacturing enterprises above the scale of 32.795 billion yuan, an increase of 26%; the total profit was 3.28 billion yuan, an increase of 52%; export delivery value 50.42 billion yuan, an increase of 23%. And the full load of orders, let the next growth remain worry-free.
This is the same as the heavy card. Although steel prices soared in July, heavy trucks were not affected. According to China National Heavy Duty Truck's data, the company's heavy truck sales in July increased by 109.5% year-on-year; from January to July this year, the company sold a total of 77,827 heavy trucks, an increase of 82.7%.
According to industry insiders, the performance of the heavy truck industry continued to exceed market expectations in the second quarter.
According to the data of China Automobile Association, the year-on-year growth rate of sales in April, May and June this year was 51.5%, 50.7%, and 64.4%, respectively, maintaining the growth rate of 53.4% ​​in March. In the traditional off-season in July, China’s heavy truck sales were 94,000. The vehicle is the highest sales volume in July of the industry, with an increase of 89% year-on-year. From the perspective of automakers' orders and stocks, orders continued to grow at a high rate, with stocks only 40% of historical highs, the lowest in history.
“Because the order situation is good, although the increase in raw materials has diluted profits, the overall impact on the industry is small.” A person in charge of China National Heavy Duty Truck told the media.
However, when the heavy industry is in full swing, the textile industry is solemn.
Due to the continuous increase in the cost of raw materials, packaging and transportation, production costs have risen sharply. Since August 1, Huafeng, Zhejiang Blue Peacock, Hangzhou Shuerzi, Taihe Spandex and other companies have raised their prices, with an increase of more than RMB 1,000/ton. . Under the influence of environmental protection pressure, the dyeing factory has stopped working and the number of semi-stopping is high. Many textile enterprises place orders on the printing and dyeing. At the same time, the dyeing fees are also rising all the way.
The rising costs have put pressure on textile companies that are gradually picking up. In fact, it is difficult for textile trade companies to take orders in the near future. Many companies have received orders at low prices and grabbed orders. Some enterprises have low prices, high quality requirements, and huge profit margins.
“In order to get orders, manufacturers are not only attracting customers, but also the competition is too strong. Due to the scarcity of orders, the shipment speed is slower, the funds are tight, and the market waits and sees the emotions. They are waiting for the arrival of spring in the torment.” Jia Hexin, director of textile raw materials management, said.
A research report from Yantai shows that from the perspective of Yantai enterprises, the current transformation and upgrading of enterprises is difficult, and the problem of weakening momentum is further revealed. Some enterprises are struggling, and some historical and sedimentary difficulties accumulated in the past are still difficult to eliminate. The price index of energy and primary industrial products has been significantly improved. The problems of labor, financing, and environment are still difficult to change. As a result, some enterprises have neither technical advantages nor brand advantages, and the cost of enterprises that can obtain cost advantages through global layout increases, and the capital chain is tight. The market is shrinking. Although the overall corporate profitability has further rebounded on the basis of last year, the industry and enterprises have become more serious.
And this is also consistent with the national situation.
"Industrial producers have a large increase in purchase prices, which will increase production costs and reduce corporate profit margins. Enterprises will face deeper structural adjustments. The price differentiation of different industrial products has become the norm in recent months, and enterprises should pay more attention to innovation. Promote the optimization of production structure and promote the reform of production methods, and the transformation and upgrading is imminent," said Xu Jianfeng, director of the Regional Economic Institute of the Zhejiang Academy of Social Sciences.

The data pressure is in fact, such uneven heat and cold, has long been shown on the data.
In the ex-factory price of industrial producers, the price of production materials rose by 7.3% year-on-year, affecting the total level of ex-factory prices of industrial producers by about 5.4 percentage points. Among them, the raw material industry price rose by 9.3%, and the processing industry price rose by 5.8%.
Among the purchase prices of industrial producers, the price of ferrous metal materials led the increase of 14.1%, the price of non-ferrous metal materials and wires rose 13.2%, the price of fuel power rose 10.7%, and the price of construction materials and non-metals rose 9.3%. .
"Overall, the PPI in July rose by 5.5% year-on-year, the growth rate was flat for three consecutive months, the price operation was basically stable, the price fluctuations were small, which helped the industrial economy to run smoothly, the industrial enterprises' business risks and uncertainties were reduced, and profit growth. And production activities are more stable." Liu Xuezhi, a senior researcher at the Bank of Communications Financial Research Center, told the China Times reporter.
Not only the PPI, the July manufacturing PMI also released a slightly pressured signal.
The PMI for July was 51.4%, down 0.3 percentage points from the previous month. Recently, the prices of industrial products rebounded, and the prices of ferrous metals and non-ferrous metals increased significantly, which led to an increase in the prices of raw materials for the manufacturing industry and the end of the finished products in July. As the three major orders index fell, market demand showed signs of weakness. Manufacturing production has slowed down, and finished goods inventory and raw material inventories have declined, indicating that the enterprise replenishment cycle may end.
Guojin Securities Research Report shows that in the second half of the year, infrastructure construction will be affected by the suspension of special financial bonds and the slowdown of fiscal expenditures. The growth rate of investment will decline, the demand for industrial products will fall back, and the marginal contribution of superimposed supply contraction will decrease. The price of the product may be weaker than the performance.
“The future PPI may fall, but there will be no negative growth during the year. With the slowdown of investment, the demand for industrial products may weaken, and there is no basis for the significant increase in the price of industrial products. In addition, the PPI continues to rise in the second half of last year to form a high base. In the second half of this year, the PPI hike factor will fall rapidly, so the PPI growth may decline in the future. However, the PPI trend will stabilize and the decline will not be too large. The PPI increase may be lower than 5% in the second half of the year, but the average annual increase is expected to be higher than 5 %." Liu Xuezhi said.
As the price stabilized, monetary policy did not turn to necessity. Liu Xuezhi believes that monetary policy will remain stable and neutral in the second half of the year, and GDP is expected to grow by 6.7% for the whole year.

2000 mm diameter Sieve Machine is a big diameter sieve machine. it can screen and classify large quantity of material. Vibrating Screen is widely used in food, Pharmaceuticals, chemical, building materials, plastic, mining, environmental protection and other fields.  
The vibrating screen is a high efficiency machine, which can fit 1 ~ 5 layers of sieves.

2000mm Diameter Sieve Machine

Diameter 2000mm Vibrating Screen, Sieve Machine, 2 Meter Sieve Vibrating Machine, Sifter

Xinxiang Xin Ming De Machinery Co., Ltd. , https://www.xmdsieve.com