Significantly increased in the prices of raw materials

Since the beginning of the year, the main raw materials in the power equipment manufacturing industry, such as copper, aluminum and silicon steel sheets have experienced a wave of price increases. At present, the prices of basic raw materials such as copper, aluminum and electromagnetic wires are all at a high level, which has increased the cost on enterprises.

Raw materials such as copper, aluminum, and silicon steel sheets account for a significant proportion of the cost composition of basic electrical products. For example, in wire and cable products, raw materials account for over 80% of the total cost; In transformer products, material costs account for over 70% of the total cost.

Therefore, the significant increase in raw material prices has led to a significant increase in the cost of these basic electrical products. Analysis suggests that a 10% increase in the price of silicon steel will increase the cost of transformers by 3.8%; The price increase of copper and aluminum by 15% has a cost impact on transformers of 4.2% and 4.5%, respectively. The increase in energy prices, transportation costs, and human resource costs has also driven up further costs for enterprises, resulting in higher product prices.