Our reporter Cao Weixin Liu Huan
The rise in the price of raw materials for new energy vehicles is triggering a series of chain reactions from top to bottom, plaguing participants in the entire industry.
Due to cost pressure, power battery companies have to change the price negotiation rules and set prices on a quarterly basis; OEMs are busy negotiating prices with power battery companies, and at the same time ease cost pressures by raising product prices; consumers need to pay higher prices , buy new energy vehicles.
In fact, not only the new energy vehicle industry chain, but also the "butterfly effect" caused by rising raw materials also occurs in other industries.
According to the incomplete statistics of the reporter of "Securities Daily", since the beginning of this year, the prices of raw materials in the household, chemical, paper, household appliances, ceramic tile, bathroom, tire and other industries have all risen to varying degrees.
The reporter learned through investigation that A-share listed companies that act as "leaders" in various industries are "seeking and dismantling" when dealing with the problem of rising raw material prices. The upstream extension of the industrial chain.
In addition, hedging business as an important hedging tool is also adopted by more and more listed companies.
Raising prices is not the only way to "help yourself"
Enterprises diligently practice "internal strength" to tap potential and increase efficiency
Relevant staff of a power battery manufacturer said in an interview with a reporter from Securities Daily, "The cost of batteries accounts for a relatively high proportion of the cost of new energy vehicles, accounting for about 30% to 40%. Last year's power It can be said that battery companies have digested the pressure of rising raw material costs. At present, the price increase is mainly due to the price transmission of upstream raw materials including lithium carbonate. Of course, the price increase will definitely have a certain transmission to the downstream. As for how much the transmission is, How much it will rise will be calculated by the company according to a certain formula.”
Faced with the cost pressure brought about by rising raw materials, although price increases are the most direct method adopted by most companies, it is not the only way to relieve pressure.
During the survey, the reporter found that tapping the potential inward has become an important measure for most companies to optimize product costs.
In an interview with reporters, the relevant person in charge of CNNC titanium dioxide said: "In the context of the continuous rise of raw material market prices, by locking the supply of core raw materials and their purchase prices, each business unit reasonably allocates supply resources, further reducing the company's production costs. At the same time, in terms of settlement method, waste utilization, production scale and three expenses, it also reasonably controls costs, reduces expenses, and controls various costs and expenses of the enterprise in the best state to maximize benefits.”
In an interview with a reporter from Securities Daily, an executive of a listed pesticide and chemical company in Jiangsu said, "We have achieved the ultimate in tapping potential internally. We not only make a fuss about capacity utilization, but also strengthen management in all aspects to reduce raw material consumption. For example, the company needs to consume 1.5 tons of glycine to produce 1 ton of products. Now, through efforts, it has become only 1.3 tons. This year, the company also launched an intelligent production workshop to reduce labor costs, including the recycling of industrial by-products, etc. These affect production All aspects of cost we have been doing.”
In addition to digging inward, some listed companies are actively trying to create new profit growth points by extending the layout of the industrial chain and developing high value-added products.
In early March this year, Longbai Group, a listed company in the titanium dioxide industry, announced that it had signed a "Strategic Cooperation Framework Agreement" with Tianjin Gateway Power Industry Co., Ltd. to increase the project of positive and negative electrode materials for lithium batteries.
Since the company announced in August last year that it planned to spend 4.7 billion yuan on cross-border lithium batteries, the company has been making frequent moves for more than half a year, and has continuously promoted the strategy of "turning waste into treasure".
In addition to Longbai Group, CNNC Titanium Dioxide, Anada, etc. have also entered the field of lithium iron phosphate cross-border by virtue of their own advantages of "turning waste into treasure".
Wang Chikun, an economist who understands the research institute, told reporters, "ferrous sulfate, a by-product of titanium dioxide, can be used as a raw material for iron phosphate to produce lithium iron phosphate. The company's active deployment of new energy industry chains such as iron phosphate can create new dividends for the titanium dioxide industry. "
Does the listed company's strategy of extending the industrial chain work?
Pan Helin, co-director and researcher of the Digital Economy and Financial Innovation Research Center of Zhejiang University International Business School, expressed his views on the development of the new energy vehicle industry: "Battery companies and OEMs can seek to extend their business upstream of the industrial chain, especially Increase the mine production of lithium and nickel, such as by developing the salt lake industry to provide lithium, and increase the supply of lithium carbonate and lithium hydroxide. Only when the supply and demand situation improves can the increase in raw materials be reduced or slowed down. Of course, the management level must also promote lithium battery recycling , improve the efficiency of resource use through recycling and reuse. In terms of lithium extraction from salt lakes, we must further increase mining efforts, emphasizing both import and self-sufficiency.”
Most companies are more risk-averse
Actively develop hedging business
In order to reduce the adverse impact of raw material price fluctuations on the company's production and sales, some companies will make full use of the price risk management function of the futures market to carry out hedging business.
The reporter saw on the interactive platform that Hesheng Co., Ltd. responded to investors' inquiries about the risk of raw material price fluctuations and said, "In response to the impact of raw material price increases, the company comprehensively uses price adjustment, hedging, and continuous in daily operations. Technology improvement and process optimization, reducing internal operating costs and reaching strategic cooperation with suppliers to respond."
Dongfang Shenghong is also carrying out hedging business. The company replied, "Current investment varieties include crude oil and other products related to the company's production and operation or the required raw materials."
Regarding the effectiveness of hedging, CITIC Futures gave a detailed analysis of lithium battery companies as an example.
According to the analysis of CITIC Futures, "due to the large number of raw materials purchased by lithium battery manufacturers and the large price fluctuations, the risk exposure is mainly concentrated in lithium battery manufacturers. Lithium-ion battery manufacturers with an annual production capacity of 50GWh, if the period from January 2021 to December 2021 Buying hedging on the purchasing side in the process of rising raw material prices in this month can save 910 million yuan in procurement costs; if the raw material prices and semi-finished products inventory side sell the hedging during the process of falling raw material prices, it can achieve 250 million yuan in value hedging.”
Kuang Yuqing, founder of Lens Company Research, also agrees that companies should use more risk-averse tools.
Kuang Yuqing told reporters, "If possible, companies should be encouraged to transfer the price fluctuation risk of some upstream raw materials with a large amount to the financial market, and use the financial market to digest related risks. But at the same time, it is also necessary for financial institutions to have sufficient convenience. The related commodities and futures products, of course, can also be insurance products, so while encouraging the participation of enterprises, the innovation and product construction of the financial market must also keep up. Delivery standards should also be grounded; at the same time, insurance services should also be improved to play their due role.”
However, there are certain thresholds for hedging business.
Kuang Yuqing said, "For enterprises, if the raw materials are bulk commodities, they can lock the cost in advance through financial instruments such as futures. If not, they can only respond flexibly. The most important thing is the bargaining power of their own products. Pricing power.” (Securities Daily)