The impact of steel surplus on the hardware industry geometry?

Affected by the overall economic situation, it is difficult to completely solve the cost problem in the short term. It can even try to replace steel with lower-cost alternative materials without affecting the quality of the product, so as to completely get rid of the limitations and impact of the steel industry.

In the long run, only relying on the company's own strength, expanding more sales channels, and improving corporate profits can better withstand cost pressures. It is necessary to upgrade the level of innovative technology of enterprises, seek product innovations, increase the added value of products, and get rid of the current status of large-scale production only relying on low labor costs. Once the technological content and added value of products are increased, the cost pressure will naturally be overcome. There have been precedents in the past, but it is only necessary for companies to have very high research and innovation capabilities.

Avoid Blindly Expanding Capacity The relevant person in charge of the Ministry of Industry and Information Technology stated that China’s current steel production capacity exceeds 700 million tons. In the development of the industry, it is necessary to avoid blindly expanding production capacity. Otherwise, it will cause many adverse effects on further development. The above-mentioned person in charge emphasized that “solving the problem of excess capacity does not mean overcapacity in the general sense, but rather serious overcapacity, or the blind investment or blind expansion of production.” The responsible person mentioned Therefore, it is necessary to make full use of the force-reduction mechanism of energy conservation and emission reduction, further increase the elimination of backward production capacity, and strictly control the blind development of industries with high energy consumption, high pollution, and overcapacity.

According to a research report, the building materials market in China has maintained a steady upward trend in recent days, and the increase in the northern region has been noticeable, especially in North China and Northeast China, which have risen close to one hundred yuan. Affected by the high price of bulk building materials, the prices of construction hardware products are also bullish in the near future. The building materials market, which uses steel as its main raw material, is most affected by the steel market.

The steep rise in cost pressure for construction hardware companies For the Ministry of Industry and Information Technology on controlling the overcapacity of the steel industry, and eliminating the backward production capacity, the spokesman of the organizer of the China International Construction Hardware Exhibition expressed its own views on the impact of the construction hardware industry. "The Ministry of Industry and Information Technology has stated clearly that it is necessary to control the overcapacity in the steel industry and eliminate outdated production capacity, which may lead to a decline in steel production, which, together with the rise in iron ore prices, will be the 'behind the scenes' pushing up the price of steel products. The building materials and construction hardware industry may also be forced to raise prices due to higher cost pressures, "said the spokesperson.

The spokesperson said that the cost pressure facing the construction hardware companies is not news anymore, because just past 2010, the price pressure of iron ore all the way up the domestic steel prices, inflationary pressures and the "use of labor at the end of the year The "absurdity" has increased the company's employment costs. If steel production is reduced, the price will inevitably continue to rise, giving the Chinese construction hardware companies greater cost pressures.