Steel prices drive up prices of hardware products

The reporter Li Wenbo reported: Yesterday, the 18th China International Hardware Expo opened in Guangzhou in 2010. Many hardware companies stated that the increase in steel prices drove the price of hardware products soaring. Under the trend of market reshuffling, hardware companies pay more attention to creating Brand.

At the exposition yesterday, more than 2,000 well-known Chinese and foreign hardware companies, including Bosch, Stanley, Dongcheng, and Bunker, gathered in Guangzhou Pazhou Hall, Bailite Machinery Co., Ltd. from Foshan, Guangfo International Electromechanical Hardware City, etc. 20 Many companies exhibit.

At the scene, the reporter saw that many companies had demonstrated on-site metal grinding, cement drilling, even lion dancing, and playing movies to attract the attention of exhibitors. "Now the hardware industry's market is better than last year." A salesman from Guangzhou Hans Tool Manufacturing Co., Ltd. told reporters, but the hardware industry is facing the pressure of rising steel prices.

Mr. Lin, head of sales of Yingzhiyin Hardware Tools Manufacturing Co., Ltd., Nanhai District, Foshan City, said that due to the increase in steel prices since April of this year, the company’s product prices have also increased accordingly. "The price increase is about 14%."

Chen Hongmin, head of sales of Foshan Jiaopai Tool Co., Ltd., also stated that the company's manual hardware tools cost mainly in the steel industry. In the case of many companies with similar competition and fierce competition, “a price increase of 10%, the customer’s response is greater. However, it is still acceptable.” Chen Hongmin said that due to the serious homogenization of manual hardware tools, some market sales are not very good. Companies have only to change the label “Hong Kong” and “Taiwan” technology brands to continue.

It is reported that since September, the “Eleventh Five-Year” targets for production-restricted and power-restricted sprints have intensified throughout the country. The price of steel products has also soared in the process of restricting production. Steel prices have risen by around 200 yuan, and Tangshan and other places have even more wire rods. It is up 400 yuan/ton. The recovery in domestic manufacturing industry's rising demand for steel has caused the hardware industry to sway prices.

“While steel prices are not targeted at which company, if the company can not withstand the pressure to be shuffled, this is a very natural market competition.” Foshan Bailite Machinery Co., Ltd. Sales Manager Mr. Tang said.

For example, he pointed out that there are more than 20 domestic nail gun manufacturers in the past few years, but now only less than 10 companies have shuffled through competition. And Perlite Machinery has seized nearly 40% of the market share in South China. After the establishment of the brand, it has its own pricing power. The impact of steel price increases is limited. “Our 50% of our metal materials come from imports. We have positioned ourselves in the mid-to-high end from the beginning and avoided low-price competition,” Mr. Tang said.