Copper and natural rubber prices skyrocketing, our valve core business victims. Although the valve core into the New Year has been conducted in a 5% price increase, but the copper and rubber prices in the New Year and 20%, prices of valve core valve core has been far behind the main raw material price increases. Valve core is inevitable a new round of price increases is expected to end in 3 or 4 hours early range of 5-10%.
Forced high price of copper and rubber valve core prices. The main raw material for the valve core copper and rubber, copper valve core costs accounted for about 60%, rubber valve core costs accounted for about 20%. World copper prices have soared since last June more than 60%. Early February this year, over 10 million U.S. dollars / ton mark, and has been up high. Relative to the beginning of last year, now 100% more than copper prices, rubber prices rose in 100% or more. Since last year, despite three rounds of valve core price increases, price increase in 15 to 20%, but much lower than the copper and rubber, and other major raw material price increase. At current prices, valve core are at a loss. Valve core businesses rely solely on their inability to digest is the cost of tapping the potential, can only choose prices to the downstream transfer.
Increased labor costs to promote the valve core prices up. Valve core is labor-intensive industries, labor costs accounted for the cost of valve core 20%. Valve core business in China are mainly distributed in Ningbo, Jiangyin, Shanghai, Hangzhou and Qingdao, and other regions, relatively high wages in these areas. Early last year to promote these areas to implement the new labor contract law, labor costs have a larger increase. After the Spring Festival this year, universal valve core labor wages rise 1 to 2 percent. This is also a factor in valve core prices.
Demand valve core to support prices. 2009 and 2010, China’s auto market to a “blowout” type of growth, which increased car ownership in China, these cars will be two or three years valve core consumers. Significant recovery of the world automobile industry, General Motors, the world’s auto giants Ford, sales of substantial growth in the situation, China’s January car continues to improve, people drive and the car intended growth, increase human security means, which are increasing the valve core demand for valve core prices provide support.
China valve core 75% of the total world production, while China’s total output of half of the valve core from the first few of the major manufacturers control. The main manufacturers of these play a vane role, once the prices of other companies quickly follow. Is the core business of large-scale valve obvious intention prices, some companies have already notified the user to issue price. Only take into account the January price of just mentioned, separated by a short time, so the Tire Valve core businesses to choose the end of the first quarter or early second quarter.