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Auto Parts Enterprises: Ecological Cluster Survey of Small and Medium-sized Suppliers in Worry
Release time:
2018-07-23
Chen revealed that because such steel plate is a high technology content of high-end products, and domestic prices than imported similar steel plate has an advantage, and therefore can hold the judging right to dominate.
Large enterprises upstream and downstream bargaining to transfer the pressure of rising costs, small and medium-sized suppliers in a worrisome situation
Has undertaken research projects of the Development and Reform Commission, China Automotive Technology Research Center, Automotive Industry Planning and Design Institute, an expert believes that those technically featureless, the internal operating costs of the enterprise is difficult to lean automotive parts, components supplier survival situation is worrisome.
Iron ore prices for all types of steel-based raw materials for auto parts companies, is undoubtedly a nightmare. Domestic production of medium and high-grade car body steel plate Guangzhou Steel JFE, annual production capacity of 320,000 tons, if you have to deal with cost changes alone, the latter three quarters of this year at least 336 million yuan cost pressure. But for this steel plate factory that holds the right to speak, it can successfully transfer this risk to the downstream vehicle manufacturers, even so, a quarter of profitability is still not reached. In the face of the same pressure, more parts factory is in deep water.
Meanwhile, Moody's Ratings issued a new report last week that Asian auto parts makers are facing the challenge of pressured profits and slowing overseas markets, and set the outlook for Asia-Pacific auto parts makers in the next 12 to 18 months at negative. China's parts and components ecological group who will stand up in the baptism of this sudden cost storm, who will fall?
Finished steel sheet rose 20% in the second quarter
“The pressure of rising raw materials in the first quarter we carried down, from the second quarter by the OEMs to bear the burden of 1400 yuan per ton of finished steel plate, an increase of about 20%, the third quarter will have to go up.” Guangzhou Steel JFE director, executive vice president Chen Guijiang told reporters.
Baosteel and Guangzhou Steel JFE is the domestic production of two major enterprises in the body of high-grade car steel plate, other high-grade car steel plate can only rely on imports, very much “the emperor's daughter does not worry about marriage,” the sense of superiority. As wide steel and Japan's second-largest steel company JFE equal share ratio joint venture company, in February this year, the international iron ore benchmark price rose 65%, wide steel JFE and customers after several rounds of negotiations, finalized the second quarter by the car factory to bear the main raw material prices triggered by the incremental increase. Baosteel also reached the same downstream OEM cost transfer of the same rate of increase. Chen Guijiang said, the third quarter of the international steel base price per ton will rise 100 U.S. dollars, then again price increases are inevitable.
Chen revealed that because such steel plate is a high technology content of high-end products, and domestic prices than imported similar steel plate has an advantage, and therefore can hold the judging right to dominate. “Only steel cost increases brought about by the overall upward cost, OEMs bear about 93% of them.” In addition to the transfer out of the part, Guanggang JFE also bear the production of consumables and other cost upward pressure, the first quarter alone to bear to make this quarter's profitability targets have not been reached. “First-quarter earnings expectations dragged into the second quarter to realize.”
The same as the steel material for the large Tianrun Crankshaft Co., Ltd. is China's largest crankshaft specialized enterprises, the leading product market share of 60%, but also ready to cope with the 15% -20% increase in the rate of preparation. Zhang Yang, deputy general manager, said the steel mills are strong sellers in the industry chain, which puts a lot of pressure on downstream parts factories. But obviously, they can't transfer almost all of the rising costs of raw materials like Guanggang JFE.
“South Korean auto parts makers Hyundai Mobis and Indonesia's GajahTunggal, and China's Jiatong Tire can all pass on rising rubber and steel to their customers,” said Moody's vice president and senior analyst Park Geun-woo, one of the authors of the Moody's report.
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