The manufacturing industry should actively respond to the expansion of PPI and CPI "scissors gap"
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In July, the "scissors gap" between PPI and CPI reached 8 percentage points, a new high since data are available.
This reveals an important signal that the transmission of price increases from upstream to downstream is not smooth, and the ability to transfer costs is weak, which suppresses the willingness of mid- and downstream enterprises, especially the manufacturing industry, to invest in expansion.
An important reason for the expansion of the "scissors gap" is the rise in the prices of crude oil, coal and related products.
According to data released by the National Bureau of Statistics, from a month-on-month perspective, the price of means of production rose by 0.6% in July, an increase of 0.1%; from a year-on-year perspective, the price of means of production rose by 12.0% in July, an increase of 0.2%.
In the face of rising prices of production materials, a series of "guaranteed supply and stable prices" policies and measures have been introduced intensively.
It can be expected that with the successive implementation of these adjustment measures, the contradiction between supply and demand will be eased, and commodity prices are expected to further return to a reasonable range.
However, policy regulation is only one aspect of the response.
For the manufacturing industry that is greatly affected by commodity prices, it is even more necessary to take the initiative to take corresponding measures, do a good job of cost control, self-decompression, and actively respond to the impact of the expansion of the "scissors gap."
First, use financial instruments such as futures hedging to hedge risks.
This can effectively lock in the purchase cost of raw materials, reasonably avoid the adverse impact of raw material price fluctuations on operations, improve the business level of the company, and ensure the continuous and healthy operation of the company.
From the perspective of listed companies, many have already adopted this measure.
According to data previously released by the China Securities Regulatory Commission, the number of A-share listed companies that issued hedging announcements in the first half of the year reached 556, which has exceeded the full-year level of 2020.
Since entering the second half of the year, this team is still expanding.
On August 10, Jiangsu Shentong issued an announcement stating that in order to reasonably avoid the adverse effects of steel price fluctuations on the company’s purchase costs and product sales, and to effectively control and prevent operating risks, the company and its subsidiaries intend to carry out hedging business of steel futures varieties to protect Production and operation developed steadily.
Second, increase the intensity of refined management, scientifically control the cost of each link of production, improve production efficiency, and reduce operating and management costs.
At the same time, it is necessary to make good use of a series of support policies introduced by relevant departments.
The author believes that in a market environment where commodity prices are rising, companies must find the right direction and strive to reduce costs and increase efficiency to the extreme.
Not only have to stand firm in the market, but also stand out from the competition, in order to win more high-quality orders, improve the company's operating performance, and achieve the purpose of improving quality and efficiency.
Third, through long-term strategic cooperation, strengthening upstream and downstream inclusive and mutual assistance, and industrial chain apportionment, we will work together to deal with short-term difficulties.
Upstream and downstream companies should take a step back through negotiation, which can better reflect "seeing the truth in times of adversity" and lay a solid foundation for becoming long-term strategic partners in the future.
Some listed companies have already taken action.
On August 4, Narada said that the company will continue to promote the implementation of a price linkage mechanism and agree on price linkage terms with downstream customers. If the benchmark price fluctuates to a certain extent within a period of time, the two parties will readjust the price of battery products.
The price increase of raw materials will not last long.
As long as the manufacturing industry stabilizes its position, balances its mentality, and copes with difficulties together, it will surely usher in new development.
(Securities Daily)