High Inventory Of Raw Materials Declined In 2009 The Most Difficult Spring Appliance Industry -
High inventories in larger number of raw material prices fell sharply to face as
well as internal and external circumstances be reduced, the spring of 2009 will beHome Appliances
Manufacturing the most difficult period, but with the effect of the national policy of stimulating domestic demand appeared, the difficult conditions in the home appliance manufacturing industry will be eased since then.
2008 9 months ago in the long-period lead to a long period of inflation based on raw material prices, in this case, the appliance manufacturers to lock a lower cost, generally choose a large accumulation of raw materials and finished goods the way to resolve pressure of rising costs, resulting in the industry and the circulation of large industrial finished goods inventory, in the absence of mechanisms with short hedge the risk of decline in value of the case, the crash in prices of raw materials may become a potential loss of these stocks.
Manufacturer of industrial stocks to complete their upstream businesses to meet up, account for longer, which strained relations between the two funds. Manufacturing systems control the flow of purchase from the manufacturer after the completion of large commercial transactions, due to weaker demand, sales of these goods are not well to form a larger business inventories, business inventories to some extent inhibited the mobility of business .
China's gasoline consumers have a lingering question, why the international oil prices rise when our domestic oil prices will soon follow up, however, when international oil prices come down very slow decline in domestic oil prices, which One key reason is that oil company stocks, rising oil prices make fuel distribution companies are in possession of a large number of stocks, if oil prices drop to our oil prices down immediately, then the loss of oil circulation enterprises will be more .
In the household appliance industry is the same reason. Decline in value in raw materials prices, the domestic electric appliances no drastic drop in prices, the reason is high inventory. We now see a retail price of the entire industry emerged to control the consistency of the few not cut prices, manufacturers are testing the process with a long to release their high-priced stocks, but I think that by maintaining a relatively high stock price effects of slow release until next spring will not be obvious, why? Because the demand is becoming weaker, effect of state policy to stimulate demand appeared to take some time, so stock release process will be stretched, and this pressure is great for the home appliance manufacturing industry, especially the larger inventory
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Industry.
I expect this slow release process may become a process of seeking liquidity, rather than a pursuit of the process is not a loss, meaning that manufacturers will soon realize that when the market is more severe when the funding cycle more important than the loss, this time the market will likely see a big price reduction trend, which is competing to sell into corrections you, if this situation occurs, then I estimate the market next spring, when the recession (this time driving demand for Western New Year has passed ).
Although the price has been lowered interest rates, reduce the financial cost of holding inventory, but if because of liquidity problems, manufacturers will be relatively long period of time may become large inventory for their fixed assets and the financial cost of working persons.
May deduce the course of this we have questions, you may think that there are appliances to rural areas to stimulate the policy can ease the market price, but I think it is very difficult, because the product line, bringing home appliances small category, product price has been low-cost constraints, we have a market reality is the first appliances to the countryside after the high-priced inventory policy, use high-cost products to the countryside if it is possible, however, the rural market can only become a manufacturing losses of the last places stock price down because many thousands of dollars less than the countryside or up the price line, so that the spring of 2009, is more difficult for home appliance manufacturers for some time.
Home appliances to the countryside policy is the most timely and most government as a policy science, has never been this policy can be seen on the home appliance industry, the government is expected next year difficult, because the Government is very clear about our ability to supply home appliance manufacturing dependent on a high dependence on foreign trade, while exports blocked when excess capacity must be looking for our exports, but the reality is that this policy needs of the environment faced by some flaws, is the weak purchasing power of farmers.
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