Electrical Equipment / Components & Telecoms

Movie Title: "Price Increase"

Director: Inflation

Leading starring role: steel factory, aluminum factory, copper factory, plastic factory...

Friendly performance: major suppliers

Release time: 2021

On the news, in response to the surge in the futures prices of steel and iron ore, after the market closed yesterday, the three major exchanges of Shanghai Futures Exchange, Dalian Commodity Exchange, and Zhengzhou Commodity Exchange jointly launched a move to flatten the rebar and hot coil 2110 contracts. The transaction fee of Imakura is adjusted to one ten thousandth of the transaction amount; the margin level for iron ore-related contracts will be increased to 15% from the 11th, and the price limit will be increased to 13%.

Yesterday was a day to make history. Except for coke, the black series did not hit the daily limit. Most of the other varieties were blocked within a few minutes of opening. The domestic steel price soared and hit a record high in one fell swoop. Steel mills and traders were reluctant to sell. . Although the three major futures exchanges joined forces to cool down after the market closed, today's steel futures are still strong, and the leading steel mills have continued their soaring momentum, and steel prices have once again set a new record high.

Specific: The main contracts of the night black series have declined, but today oscillated and rebounded. Except for coke, which recorded a decline, the rest of the varieties rose to varying degrees, and the volume of snails both reached new highs. As of the close of the market, the main hot-rolling force was reported at 6540 (421,6.88%), the main force of rebar was reported at 6086 (267,4.59%), the main force of coking coal was up 2.12%, and the main force of iron ore was up 1.67%. Judging from the daily k-line chart, the policies of the three major exchanges are not very effective in cooling the market. Currently, the main force of hot coils continues to move towards the 7000 mark. Although the rebar has closed the negative line, the overall level is still at a historical high level.

As for the spot market, driven by the rise in futures steel, the market quotations differed greatly. Compared with the collective excitement of steel merchants yesterday and the rapid rise of quotations of 500-600 yuan, today's thread spot atmosphere has eased, but except for the East China region, it is stable. Apart from the weak tone, the price hikes in other regions have not stopped. Monitoring data showed that Lanzhou and Xining rose 220 yuan, Taiyuan, Xi'an rose 200 yuan, Chongqing, Changchun, and Harbin rose 100 yuan. The average spot price of the three major cities in the country reached 6,348 yuan/ton, an increase of 74 yuan/ton from yesterday. Ton.

Leading steel mills further raised their ex-factory prices, and traders were reluctant to sell their products. "Many steel mills and traders have closed their products." The spot price has gone crazy. Today's market spot price has risen by 20-500 yuan, hot areas All dealers have started to seal the disks one after another and will not ship them anymore.

In response to the drag racing price adjustment of various raw materials, various motor companies have also passively adjusted prices, ranging from 5-10% respectively. Among them, Zhejiang Jinlong Motor issued a notice showing that the company's various motors have adjusted prices by 20%, which can be said to be a price increase!

Since 2021, domestic bulk commodities such as industrial metals such as copper, iron, aluminum, steel, crude oil, coking coal and other ferrous commodities have all experienced the most ferocious rise in the past decade. Since 2021, the rise has exceeded 20%.

An analysis by Guojin Securities pointed out that the logic of this year’s commodity price increases is significantly different from last year. Last year was mainly caused by the loose liquidity of the US dollar and the impact of the epidemic. The logic of commodity price increases this year should be based on the mismatch of supply and demand, so price increases. Trend differentiation. In the context of the gradual recovery in demand, the prices of those varieties that have a high utilization rate of capacity on the supply side and new capacity that is difficult to put in a short period of time, such as copper and aluminum, have continued to rise.

In this context, as the "main force" in the consumption of bulk commodities, electrical machinery companies have felt the pressure on profitability. Although some companies have raised the prices of electrical machinery products, they still cannot resist the continued downward trend of profit margins.