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    The high cost of domestic and foreign enterprises rallied together to resist the steel price hikes

    Yesterday, the Shanghai Securities News on the car rate, the rate of the survey found that China's vehicle manufacturers and steel makers of price negotiations are now in deadlock. At the same time, in Europe and the United States, Japan, some automobile manufacturers have begun to resist the rising steel prices, said the existing supply contracts will not be accepted on the basis of the additional fare increases.

    Nippon Steel Shanghai Branch of the relevant personnel to this reporter said: "We now have a lot of car manufacturers and domestic enterprises in a stalemate, in order to ensure that customers production, we both agreed, and the first tentative price of production, and more talks after the end of Paste-less. We are talking about 08 the second half of the price, we call up, but do not agree. "

    Analysis of the industry, this is the first batch of steel enterprises received strong signal to resist price hikes of one of the most severely affected that the car manufacturers can no longer tolerate the high cost of steel. At present, in the United States, most of the iron and steel enterprises, such as the Lok Mittal, US Steel Corp. And AK Steel Corp. And so on in the same Ford Motor, General Motors, Toyota Motor and other companies for the latest round of talks to determine the contract to buy steel The price and terms.

    In Japan, in May this year, prices of automotive steel plate per ton rose 20,000 -2.5 10,000 yen, or the highest level in history. Price increases after the car plate prices will be more than 100,000 yen. This is the first automotive steel prices more than 100,000 yen. Japan's auto industry will be (union) president Zhang Fujio steel price increases on the fact that: "I hope the automotive industry to help steel makers to reform and rationalize as much as possible to reduce the (steel prices) the impact," Chang said President: "The decline in domestic auto sales now, can not be passed on to the car," the iron and steel manufacturers that refused the request.

    According to Nippon Steel Corporation in Shanghai stakeholders, the company's annual talks on the first. Domestic and foreign automotive manufacturers to the requirements of very dissatisfied with the rate of price increases. Many contracts are in this time of year negotiations, Ford Motor, General Motors and Toyota representative of the current contract negotiations declined to comment.

    As the global economic development, especially emerging market economies have developed rapidly and vigorously build infrastructure, commercial construction and development of the automobile industry, the high demand for steel, steel prices continued to rise in recent years. Data show that last Friday, the world's largest mining company, production BHP Billiton said the company sold to steel companies, the average price of iron ore prices 85 percent than last year. Global output of the third-largest mining company Rio Tinto announced last month that, the average price of iron ore increased 85 percent.

    Although car manufacturers declined to comment on the current negotiations, but they have said that in such a difficult period, steel and other raw materials costs to the automotive industry a heavy burden.

    No doubt that, in steel and other raw materials rising background, the auto industry's high-profit status will be rewritten. Statistics show that car is still more than 70 percent of a steel product. March this year, some of the domestic automobile manufacturers have revealed that the conduction of iron ore rose 65 percent to end the pressure on car costs a result, the reduction of about 3 percent to 5 percent of overall profit, and now 96.5 percent rise in pressure conduction-to-end The results can be imagined, this means that the profits of manufacturers were further reduced. As for economic cars, especially the 50,000 car, its profit on a relatively modest, or even a loss Lingli Run will face the bottom line. Southwest Securities analyst Mr Tung said that the automobile industry is expected this year and next year is likely to be the auto industry from high growth to low growth in turn.


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