Steel prices will affect the starch processing machinery industry

Since November 2007, steel prices have risen by almost one price per day. On February 18, 2008, Brazil's CVRD announced that it had reached an iron ore benchmark price agreement with Nippon Steel and Posco. On the basis of the previous fiscal year, the southern fine iron powder rose by 65% ​​and Carragese flour increased by 71%. This will undoubtedly further increase the cost of Chinese steel companies. Zhou Jianping, director of the industry management department of the National Machinery Industry Bureau, believes that this will have a greater impact on the machinery industry. Zhou Jianping said that the machinery industry is a large consumer of steel, and some products can account for about 80% of the cost of steel, steel prices will have a greater impact on the machinery industry. According to statistics, the total consumption of steel products in the machinery industry (inside the system) accounted for 1/10 of the total steel production in the country last year; the total consumption of steel products in the large machinery industry last year accounted for 1/4 of the national steel production. This increase in steel prices will have a major impact on construction machinery, electrical appliances, automobiles, heavy machinery, general petrochemicals, machine tools, basic parts, agricultural machinery, and internal combustion engines. According to the price increase of steel products since April, preliminary calculations for the machinery industry (within the system) will increase the cost and expenditure by 5 billion yuan this year. For the starch processing machinery industry, the price of steel accounts for 70-80% of the production cost of its products. In addition to the increase in labor wages, the prices of ancillary products such as motors and pumps have risen sharply. If the price of products does not increase, some companies will The profit will be reduced a lot and threaten the long-term development of the company. However, taking into account the acceptance of users and the reasons for competition, the price adjustment of various manufacturers will not be too great. At the same time, experts also pointed out that users in the purchase of starch processing machinery should be alert to some manufacturers to reduce the quality, so as to eliminate the pressure of rising costs.