Due to rising prices of raw materials and auxiliary materials, and increased labor and transportation costs, many motor manufacturers have recently raised their prices one after another, generally between 5% and 10%. The price increase covers more than 80% of the industry's motor supporting supply, and the comprehensive price increase for motors, cabinets, and rear axles is about 30 yuan.
Price increase at the end of 01 is becoming the norm in the industry
Starting in September 2020, a group of electromechanical companies such as Xuzhou Jusong, Xuzhou Nanpu, and Jiangsu Mengtian took the lead in issuing price adjustment letters, and then more news of electromechanical price increases have been heard one after another. The unanimous reasons given by the manufacturers are all raw material price increases, leading to increased costs.
Xuzhou Nanpu Electromechanical Technology Co., Ltd. mentioned in the price adjustment notice issued in September that starting from April 2020, the prices of major raw materials in the market have risen sharply. Among them, A00 grade aluminum (aluminum tube), rare earth (magnet steel) ), copper prices (copper wire), etc., rose by 25% to 58%; aluminum ingots, round tubes (bridge tubes), round steel (half shaft), silicon steel sheets (stator and rotor), etc. rose by 10% to 20% %; and the price trend of these raw materials is still rising, leading to a sharp increase in the company's production costs and huge operating
As a leading domestic motor manufacturer, Wolong Electric Drive also issued a price adjustment notice. The notice shows that the price of general motors is adjusted by 5%-8%, energy-efficient motors are adjusted by 8%-10%, and explosion-proof motors are more than 10%. The other party stated that price adjustments are normal business practices.
As of mid-December, Regal, TECO, Shanxi Electric, Belden Electric and other companies also issued price adjustment letters, and the price increase was even higher, reaching 10%.
Based on the situation in recent years, the price increase of motors at the end of the year has become the norm in the industry.
From the source point of view, the silicon steel market price in January 2021 is still at a high level. Baosteel, Taiyuan Iron and Steel, Maanshan Iron and Steel, Benxi Iron and Steel and other steel plants have raised their base prices for non-oriented silicon steel by 800 yuan/ton, Shougang’s 900 yuan/ton, and Anshan Iron and Steel. The increase of 1,400 yuan/ton means that the spot resources of the first-line steel mills are not much. The price of Wuhan Iron and Steel's 800 grade reached 8600 yuan/ton, and the quotation of Baosteel 470 grade was as high as about 9000 yuan/ton. The futures prices of non-oriented silicon steel in February continued the sharp rise in January, and the February futures of steel mills were basically fully booked. The February futures price announced by Baosteel Group increased by about 1,500 yuan/ton from January.
In the face of rising raw material prices, the next test faced by motor manufacturers may be even more severe than they are now.