Is there a spring for the compressor industry in the year 2017?

2017-01-17 14:40:44 admin 73

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In recent years, faced with excess capacity and disorderly competition, the profit of the traditional manufacturing industry drop lower and lower, has long been the cabbage price.

At the time being, 2017 Price increases become a fact, supply reform has also brought a deeper adjustment for the related industries, this kind of price increases can bring in a favorable turn for the household appliance industry?

2017! Is there a spring for the compressor industry ?

Rise in price! It is good to the industry development in the long term!

In the whole industry, it is the terminal products to bear the rise in bulk raw material prices, at the expense of the profits in the short term, but the Industry will be more healthy and sustainable in the long run.

On November, household appliances start to rise in price!

On December, then comes the whole the whole appliances industry.

Midea, Highly and Sanyo

have declared that air conditioning compressor price will increase 10-15% from the first day of 2017.

Landa, Panasonic and Rechi   

are considering to increase the price !   

Price increases, suddenly affected the home appliance industry!

Refrigerator compressors

  • Huayi,Wanbao and Qianjiang are all announced that compressors price will price 15% from the first day of 2017.

Central air-conditioning

  • Hitachi household central air-conditioning notice that its price will increase 10% at average from the first day of 2017.

Household air conditioner

  • On 19 Dec, Gree air conditioner prices increase 50-100 yuan per unit ;On 26 Dec, Midea air conditioner prices increase 50-200 yuan per unit; Chigo air conditioning air conditioning prices rose 2% since December,2% again in Jan.

PART 1:

PPI negative growth did not stop until in September!

In September 2016, the negative growth PPI which lasted for four and a half years, was finally reversed.

As a matter of fact, from the beginning of 2016, bulk raw materials such as coal, iron ore, paper started to rise in price, spread to the entire industrial area a few months later.

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More and more industries start to rise in price; Prices of some important industrial sectors rose significantly; Some industry prices from fall to rise…

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PART 2:

Rise in raw material prices, covering the whole compressor industrial chain

From the point of Upstream raw materials suppliers:

  • Steel &copper price-rising--costs rise in screw rotor and motor

  • Aluminum price-rising--costs rise in heat exchanger, etc

  • Cast iron price-rising--costs rise in compressor-related castings, shells

  • Others price-rising in metal plate, Compressor PLC electric control panel, components and parts, filter paper, sponge. Etc

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1. By the end of November 2016, copper prices rose 40% , 49000 Yuan / Ton

2. Accordingly, each unit cost increase 12-15%

PART 3:

Pressure, not only from the raw materials!

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Rise in price! 

It is good to the industry development in the long term!

PART 1:

Leading enterprises prices-rising, driven compressor industry to a more healthy development.

  • Rise in Prices, in the purpose of a better development;

  • GMCC’S technical services, market scale, and capacity allocation occupy a commanding lead in the industry, which is the vane of the industry in a sense.


The best way to deal with the price rising is to promote functional enhancement or technological innovation products;

Improving manufacturers profitability based on adjusting the price structure and product structure!!!

Pay more attention to the product quality!

In 2016 cold year, the Chinese air-conditioning rotary compressor total capacity is more than 200 million units, an increase of 5 million sets than 2015, most companies did not make further expansion.

Among the excess capacity, the R22 fixed frequency models take a great proportion which is a barrier for the structural revolution across the industry, and go against price competition.

Lower and lower profit space led to the loss of R & D innovation, not conducive to the industry's long-term and sustainable development.

Is there a spring for the compressor industry in the year 2017?

PART 1:

Giving up Spring Festival vocation, Scheduling plan keeps high!

On December and January 2017, there are a lot of orders in compressors and air-conditioners industry. While the current cost is not high, take time to produce as much as possible.

It is said that spareparts of the compressor enterprise do not enjoy the Spring Festival.

PART 2:

30 million inventory is not worth worrying! Racing each other, when will the production competition break?

The old stock has been sold out in this year's peak season. According to the monitoring data of ChinaIOL, by the end of November 2016 , the stock of air-conditioners is about 33.7 million which is within a controllable range .

What time will be the production competition break?

Now, each enterprise has basically reached an agreement: production competition won’t stop until in May 2017.

Borrowing the words of predecessors to make a conclusion: “This is an era full of rapid changing, we are still adaptable!” We are required to make efforts to pursue excellent product, quality & stable performance!