Since the beginning of this year, the prices of domestic bulk commodities have shown a volatile upward trend. The prices of energy, metals, chemicals and other bulk commodities have basically reached double-digit increases.
In this context, the executive meeting of the State Council held a few days ago once again named the prices of bulk commodities, and required “to do a good job in maintaining market supply and stabilizing prices. Improve and implement plans to respond to rising prices of important raw materials, rationally increase domestic production, scientifically organize reserves, and strengthen key points. "Commodity market linkage supervision" has released a strong policy signal that the country will continue to ensure the supply and price stability of bulk commodities.
Why is there a surge in prices? One of the reasons is the increase in raw material costs-the average price of imported copper, iron and other raw materials has increased significantly by more than 40%, and the price of crude oil has also set a record for the largest increase in the same period in history. The increase in raw material costs has largely promoted bulk commodities. The price of general rise. Another important reason is that the global economy is recovering at an accelerating rate, especially since my country’s economic start has shown a good trend. The growth rate of product demand in the first quarter has far exceeded the growth rate of raw material output and manufacturing capacity, which has stimulated the rise of commodity prices. .
For the LED display application industry, the upstream and midstream manufacturers are the first to bear the brunt of price increases. Since the beginning of 2021, the global "core shortage" has intensified. Many chip factories around the world have announced that they will raise their foundry prices again in the third quarter of 2021, up to a maximum of 30%, and a new round of chip panics will begin in the second half of the year. Major LED lighting manufacturers have racked their brains to stock up chips, but in the end they did not withstand the pressure and announced price increases.
According to incomplete statistics, so far, more than 70 LED lighting related companies have issued price increases, including Op, NVC, Bull, Buddha, Aike, Signify, Mulinsen, Leyard, Jingfeng Mingyuan , Biyiwei, Unilumin Technology and other well-known brands in the industry, more than 15 LED lighting-related companies issued price increases in July alone.
The Party Central Committee and the State Council attach great importance to the impact of rising raw material prices on mid- and downstream industries and small, medium and micro enterprises. The executive meeting of the State Council has repeatedly studied the issue of excessively rapid rise in commodity prices, and used monetary policy tools such as RRR cuts to further strengthen financial support for the real economy, especially small, medium and micro enterprises. In July, the relevant departments completed two batches of national reserves of copper, aluminum and zinc totaling 270,000 tons, which released the country's active policy signal to ensure the supply of bulk commodities and stabilize prices, and stabilized market price expectations. Targeted placement also provides a window of opportunity for mid- and downstream processing and manufacturing companies to replenish inventory, reducing the cost of raw materials for some companies.
With the continuous efforts of the “combined boxing” to ensure supply and stabilize prices, the trend of PPI's obvious rise in recent months has begun to stabilize. However, looking at the next stage, as the domestic economy recovers and the upward trend of international commodity prices continues, the price of industrial products will remain high for a period of time. This also means that the pressure faced by enterprises in the middle and lower reaches of the industrial chain, especially small, medium and micro enterprises, may be difficult to effectively alleviate in the short term.
To prevent commodity prices from overwhelming small, medium and micro enterprises, first of all, we must continue to withdraw the "virtual fire." Do a solid job in ensuring the supply and price stability of bulk commodities, take multiple measures to strengthen the two-way adjustment of supply and demand, and use market-oriented methods to guide the upstream and downstream supply chain to stabilize the supply of raw materials and coordinate production and sales. Continue to strengthen the supervision of the futures spot market linkage, severely crack down on price hikes, hoarding and other illegal price behaviors, and maintain normal market order. Secondly, we must help enterprises strengthen their "vitality". Implement the established tax and fee reduction measures to curb arbitrary charges. On the basis of insisting not to engage in flood irrigation, maintain the stability and effectiveness of monetary policy, further strengthen financial support for the real economy, especially small, medium and micro enterprises, and promote the steady and slow decline of comprehensive financing costs. Thirdly, enterprises themselves must also strengthen their "internal forces", take active measures to tap the potential to reduce costs and increase efficiency to overcome the current difficulties, and even more need to turn pressure as a driving force to accelerate the pace of innovation and transformation.
