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Textile clothing industry cost-push price increases as it is market driven

    Many had hoped that the increase in April sales price of consumer goods industries and enterprises, have had to postpone the price of the arrangement. Since March, in order to control prices, the National Development and Reform Commission attack on all fronts in order to "interview" approach to consumer goods industries on a number of price control.

    April 20, the NDRC on its website a way to answer a reporter asked his response to the outside world, "interview" questions the way limit, said: "The interview is a means of communication, not administrative intervention, let alone interfere with the autonomy of the enterprises are not priced. We interviewed the relevant enterprises, mainly reiterated the price regulations and policies to guide enterprises to better, ratchet tie dowm reasonable and legitimate exercise of autonomy in pricing. "

    National Bureau of Statistics released the first quarter economic data. Data show that a quarter consumer prices rose 5.0%, which in March consumer prices rose 5.4%.

    NDRC officials have said prices for industrial products, they will not interfere with and limit their focus on various consumer goods industries are price controls, and that there is still room price.

    "Interview" was rampant.

    Market rumors, several major oil companies access to the national press soybean reserves to support, Chinese companies are buying soybeans to cancel international orders. "Yes, we can now state reserves low price of soybeans," the central rate within a food source, "we have been implementing the government policy of not raising their prices, business costs a lot of pressure, the Government is attempting to ease our pressure. "

    From the end of last year to now, the edible oil industry, price controls have been implemented for 5 months, starting from April extended for another two months. March 31, Development and Reform Commission in the is "interviewed", the P & G, Unilever, Li Bai, NICE and three other companies made the decision to suspend price increases. The Master Kong instant noodles giants plan price increases be postponed due to be interviewed Development and Reform Commission.

    Subsequently, extended interviews. April 2nd, the National Development and Reform Commission held a "forum of major consumer goods industry associations", from the food, beverage, general merchandise business, household appliances, wine, food, meat and other 17 trade associations, chambers of commerce of the President, Secretary Long will all be present. It is reported that at the meeting, the NDRC hopes to do self-association or Chamber of Commerce take the lead, to avoid price collusion, and beyond the cost of unreasonable price increases, while clear requirements, various associations, chambers of commerce, or preferably a separate written proposal issued jointly by the industry.

    "Since from the March, after another part of Japan, instant noodles, alcohol and other enterprises price information published in the media, pushing the market price expectations, in certain parts of the phenomenon of people buying small-scale, to some extent disorder, causing the market. "intensive interviews with recent NDRC out to explain the reasons for the various industry associations," Reaffirming the price regulations and policies. "

    Development and Reform Commission's price logic.

    But understand that, in addition to the daily consumer goods and related industries, the NDRC did not intend to intervene in more industrial areas.

    "Industrial products such as silicon and iron and steel, we will not control." NDRC price department, a deputy director, said, "these products would depend entirely on market pricing."

    To the people reflected in the number of industrial enterprises in the planned price increases because of rising costs, when the person replied: "The market demand, so companies will be price increases, the cost is only played a minor role."

    "Development and Reform Commission not care to us." A production of industrial products business, said, "Development and Reform Commission of related industries concerned about people's lives more."

    The Development and Reform Commission disclosed that the logic of the Development and Reform Commission suppress prices, "price each company would make excuses for myself, in fact, is the market better, sell better conditions, boosting the price increases. Enterprise there is considerable room for profit, should not continue driving prices up. "

    However, many consumer goods companies that are now rising raw material and labor costs too much, the original profit margins have not. For example, NICE said: gross margin of its products have been 5% to 10%, while the cost of raw materials have risen about 5%, the profit is to bridge the few.

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