Lighting companies: the price is also a bitter price

Raw material prices fall too fast, inventory pressure, in the short term to bring greater losses to the enterprise

Since late September, with the decline in global economic growth, steel, nonferrous metals, crude oil prices have dropped significantly. It is reported that the domestic steel prices in October the biggest decline since 10 years, all kinds of steel decline in more than 20%, in October the average price of domestic steel was $4739 / ton, down 16.4% compared with September. The price of crude oil in November 19th to quote is $54.47 / barrel, compared with the first half of about $147 / barrel price fell about 2 times.

Arguably, in the first half of this year has been the raw material prices continued to rise, the cost pressures of enterprises should be able to breathe a sigh of relief, but the reality is not the case. Many business executives said, steel and other raw material prices, the impact on the cost of easing the pressure on enterprises is obvious, but due to the slow down too fast, in the short term to bring greater losses to the enterprise.

Inventory pressure is difficult to bear

"As early as the steel price increases, we hurried to purchase, three months ago, when the price of copper up to more than 7000 yuan a ton, and now the price has fallen by almost half. Our warehouse has millions of dollars of steel stocks, so calculated down, just over a month's time, we have lost millions of dollars of raw material inventory." The market price of steel and other raw materials plummeted recently, a Zhejiang lighting enterprises responsible person cried out.

"Raw material prices continue to rise, we have suffered the cost pressures, and now suddenly plunged, the loss of our." Foshan Shunde enterprises as the representative of the lighting appliance companies have told reporters reflect, they are currently under the pressure of huge inventory backlog. There are companies that, due to the fear of rising steel and hard to keep the goods before, now has become the biggest burden, may lead to difficult to maintain normal operation of the enterprise. Some weak strength of the enterprise, due to the impact of the current economic downturn, coupled with the risk of their own capital chain, if more inventory, will face serious financial losses, facing the collapse of the crisis. Most people are worried about the industry, and now the general downturn in the lighting industry, this event will undoubtedly increase the difficulty of enterprise decision-making.

Price adjustment has become a hot topic in the industry

Enterprises in the inventory pressure, but also bear the pressure of the merchant. It is understood that recently many enterprises in Zhongshan have encountered businesses complain, most businesses today pointed out that the decline in raw material prices, the purchase price is still not see why? The general manager of Sichuan Cheung Wah Material Co. Ltd. Kong Xiangyu calls the most representative, he said: "when the raw materials prices, manufacturers will give all the prices of all products, and raw materials prices, manufacturers did not reflect any lighting industry. Steel in the market price is more than 6000 yuan a ton, is now more than 3000 yuan a ton, which is unreasonable." Kong Zong said that in recent days, his company is working with manufacturers to communicate the price problem, intends to send a special staff to talk about the recent price cuts.

Although most of the lighting business no price adjustment, but some companies have started to introduce some measures, such as the current Delixi to each customer merchant sent a fax, said that if the price adjustment will be business loss compensation. According to the Changsha fromo to store light in person in charge Liu Shengkai said, because he is currently operating the brand is Lonon, so he did not worry about the price adjustment problem, because like Lonon responsible manufacturers will consider for businesses.

Raw material prices will likely callback

At the same time, there are many businesses began to worry about the price adjustment will bring their own inventory burden. It is understood that some large businesses are also a lot of inventory, if the manufacturers price adjustment, will bring them no small burden, the original high priced products, will face the risk of low-cost sale. The lighting distributor of Chongqing manager Chen Yi said: "for we do brand businesses, although the price of raw materials in fluctuation, but the price adjustment is not the most important, we are in pursuit of customer service brand and service quality, I think the manufacturers do not adjust prices but is good for our agents, it can reflect our brand value and status. If the manufacturers to adjust the price of the product, I will certainly be affected by the inventory will be affected, I hope the price adjustment of the manufacturers do not too large".

Foshan Shunde benbon Electrical Appliance Co., Ltd. chairman Cai Ganqiang said, from the market analysis, the prices of raw materials this round of adjustment is the market price of the natural changes, there may also be a callback. Therefore, to maintain the relative stability of the corporate market price system, as is to maintain the stability of the stock market and the property market as important, businesses and businesses have to adjust the mentality of the focus on maintaining market stability. At present, the most important thing is to maintain confidence in the industry to understand each other, strengthen communication in order to tide over the difficulties together.