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Steel prices continue to soar! Tricycle industry is facing a tough battle!

(Summary description)First, look at the international environment!

Steel prices continue to soar! Tricycle industry is facing a tough battle!

(Summary description)First, look at the international environment!

  • Categories:Industry News
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  • Time of issue:2021-04-09 14:22
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  First, look at the international environment!

  In recent days, the price increase of iron and steel is extremely crazy. Everyone plucks up courage to take up the challenge, while thinking about how to avoid risks more comprehensively. For this price increase, from the perspective of the international environment, first, the US opening the tap for the US$ 5 trillion and the sequelae of 1.9 trillion stimulus have led to the rise of global bulk commodities; Second, on May 7, the National Development and Reform Commission issued a statement on "Indefinitely suspending all activities under the China-Australia Strategic Economic Dialogue Mechanism". At present, China and Australia have fallen into the dilemma of indefinitely suspending economic dialogue.

  Second, look at the domestic policy response!

  In this regard, industry analysts suggest that if China's steel price is still in the global price depression as before, it will attract other countries to get unreasonable benefits from China, and we will become victims of inflation in other countries, so we need steel prices to rise. Although we feel some difficulties in a short time, it is also the general trend.

  Finally, look at the development forecast of tricycle industry in the later stage!

  According to the current situation of steel price increase, it is not difficult to find that many steel mills have to raise prices 3-4 times a day, and it is expected that the upward trend may continue to rise in May. At present, the enterprises either raise the price to the daily limit, or only give out inquiry orders. In the case of not so much inventory, the price may continue to rise to the daily limit. I will detail it as follows:

  Facing the price soaring rhythm, it is not difficult to find that in the case that upstream supporting enterprises and vehicle enterprises do not accept advance payment, the capital turnover frequency of each link is reduced, the profit is reduced, and the risk is increased, which also seriously affects the people's desire to buy and affects the sales of tricycles. As the reshuffle of tricycle industry accelerates, dealers may take this opportunity to eliminate the models with low sales, low profit and aged categories, so the impact of this large-scale price increase is far more than that, and tricycle industry is facing a tough battle! (to be continued ......)

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