1. The economic crisisPrecision castingEnterprises once again carry out"shuffle"
Due to the global economic recession, exports of casting products were blocked, and domestic demand was weak. The casting market resources are very limited. In the process of competing for these market resources, some enterprises with good product quality and low cost will win; some enterprises with small scale, shortage of funds, and uncompetitive product quality and cost can only stop production or half Suspension of production, if the economic crisis lasts longer, these companies can only go bankrupt.
The high casting material prices in 2007 and the first half of 2008 have caused a batch of poorly managed casting companies to close down, and the economic crisis will reshuffle China's casting companies. From the perspective of survival of the fittest, which is beneficial to the development of China's foundry industry, it may also be a good thing.
2. The price reduction of casting products is the general trend
Affected by the sharp drop in the price of casting materials, a comprehensive price reduction of casting products is an inevitable trend. Calculated on the basis of the month with the highest raw material price in 2008, the average market price of cast pig iron excluding tax has dropped to about 2,800 yuan/t, a drop of about 40%; scrap steel has dropped to about 2,000 yuan/t, a drop of about 53%; Foundry coke dropped to about 2400 yuan/t, a decrease of about 38%. Based on this calculation, the main material cost per ton of castings has been reduced by more than 2,000 yuan. If the price reduction of ferroalloys is taken into account, the cost of castings can be reduced even more; at the same time, the price reduction of coke also causes a reduction in smelting costs. This account is not only clear to casting manufacturers, but also to casting users. Therefore, a wave of price cuts for casting products is inevitable. The key is how our casting companies use wisdom to play games with users and achieve a win-win situation in the new round of price negotiations.
3. Difficult factors in the production and operation of foundry enterprises have increased
The economic crisis has caused the price of foundry materials to fall sharply, which seems to have brought opportunities to the foundry industry, but at the same time it has also caused unprecedented difficulties. Generally speaking, the challenges outweigh the opportunities.