News

Aluminum is one of the more common resources in our lives. Whether it is the automobile industry or home building materials, it is basically inseparable from aluminum processing products. But now there are internal news that the aluminum product processing industry is beginning to accelerate the reshuffle. The enterprises in the Ministry of the People's Republic of China made a lot of money, but the enterprises in the rear or even in the middle were forced to close their doors because of the sharp increase in raw material prices.

According to the data provided by the Market Supervision Bureau, the current price of aluminum on the Chinese market has exceeded 18,000 yuan per ton. It is important to know that the price of aluminum did not exceed 13,000 yuan two years ago. This has led to a large number of aluminum processing this year. Suppliers can only stop production and switch to other industries to get a chance of survival.

But in fact, it is not to say that all enterprises engaged in aluminum processing have no profit space. For example, the upstream electrolytic aluminum unit of the leading aluminum processing enterprise can still get the raw material price of 13,000 per ton through huge interpersonal relationships. Their profit margin per ton can exceed about 4000 yuan.

However, those small and medium-sized aluminum processing companies with relatively weak financial strength are miserable. They take the raw material price of 18,000 yuan per ton. It is very reluctant to basically maintain the company without losing money, not to mention the creation of profit space. Enterprises have suspended their external orders, and the "shuffle" speed of the aluminum processing industry seems to be accelerating.

The price of raw materials in the aluminum processing industry is rising

In fact, since the spread of the new crown epidemic last year, my country's traditional manufacturing industry has begun to shrink significantly. Earlier, there was news that the prices of household appliances, led by Gree and Midea, had generally risen. At that time, the Gree spokesperson gave an explanation. The reason is that the prices of raw materials are rising, coupled with the increase in logistics costs during the epidemic, so there is an overall trend of general upward adjustments in the prices of household appliances.

Although the aluminum processing industry is not very sensitive to logistics costs, the increase in raw material prices is indeed the most important factor affecting its profits. If cheap aluminum resources are not available, then the ongoing processing activities of the enterprise are meaningless.

The "big reshuffle" of the aluminum product industry has begun

After all, the current malicious competition in the industry is becoming more and more serious. There is really no way for companies to increase the prices of products sold like Gree and Midea.

The aluminum industry is not a monolithic one. If the price of aluminum products is increased because the price of raw materials has risen, it will soon be squeezed out of the market share by those low-priced peers. This is also impossible.

Therefore, many companies have always used the slogan of controlling costs to reverse their profit model, but this road is not so easy now. Most of the raw material suppliers who provide low prices are controlled by some large aluminum processing companies, and they will not. Work with small businesses like them.

If these companies in the middle and lower reaches of the middle and lower reaches of the company want to get the goods, at least the price per ton will be more than 2,000, which is still considered a high-quality source, and some companies are more than 4,000 higher than the large companies. Their profit margins were directly cut to the minimum, and there was even no profit to be made.

Many companies have been busy for more than half a year. As a result, when they look back, their operating profits for a whole year have been in a state of loss. This makes them no longer able to maintain their current business. They can only issue a notice stating that the company will suspend foreign business transactions. On the one hand, it is to avoid the current industry "shuffle" tit-for-tat, on the other hand, it is also to quickly look for high-quality sources.

On the other hand, those companies that are at the top of the aluminum product processing industry are naturally sitting at home and waiting to collect the money. Different from those small and medium-sized enterprises, the resources they have in their hands are beyond the reach of other companies, and even raw material suppliers have to shop around for them to choose the best quality source of goods.

In addition to the low prices of goods, the anti-risk funds in their hands are beyond the reach of small companies, which makes them become industry rule makers in this "big reshuffle", while other companies can only passively accept or be eliminated Out.