The Impact on Precision Casting from Economic Crisis
1. Precision casting parts' price is lower
By the impact of material prices fell sharply, precision casting products have an inevitable trend to lower the prices.
According to the data of the highest price of precision casting materials month in 2008, the average market price of pig iron not included at present has been reduced to 2,800 Yuan / t, decreased by about 40%; scrap down to 2,000 Yuan / t, decreased by about 53%; coke reduced to 2,400 Yuan / t, decreased by about 38%.
So per ton of precision casting the main material costs 2,000 Yuan or more, if we consider the alloy price factors, the cost of casting down more; meanwhile, the price of coke has caused melting costs. This account not only the precision casting producers clearly cast the user will be counted, so the inevitable wave of casting products, prices, the key is how to use the wisdom of our foundry game with the user in the new round of price negotiations to achieve a win-win.
2. The economic crisis makes precision casting business to "reshuffle"
As the global economic recession, casting products, exports, and domestic demand is weak. Currently casting market resources are very limited. Some companies with good quality products, low-cost will win in the process of competition for these markets.
In the first half year of 2007 and 2008, the high price of precision casting materials has made a number of poor operations of the foundry business failures, the current economic crisis, precision casting companies in China will shuffle once again. It may be a good thing that survival of the fittest from the precision casting industry in China is conducive to the development of point of view.
3. Foundry companies' difficulties have increased
Economic crisis makes precision casting materials prices fell sharply, which seems to foundry industry opportunities, but also created unprecedented difficulties. On the whole, more challenges are more than opportunities.