Industry-specific business model and its relevance to upstream and downstream industries

Date��2018/4/21 8:35:34 Author��

China's stainless steel tube manufacturing industry adopts the "cost of raw material × finished product + processing fee" cost-oriented product pricing model: raw material prices fluctuate due to the market supply and demand; the finished product rate is mainly composed of stainless steel tube material, outer diameter, wall thickness, technology, technology Such factors as a comprehensive decision, the higher the rate of finished products, the lower the cost of product production, the greater the profit margin of the product, therefore, stainless steel pipe manufacturing companies in order to obtain greater profit margins, continue to carry out technological innovation and equipment updates to improve the finished product rate; The fee is relatively stable.

The upstream industry of the stainless steel pipe industry is the stainless steel smelting and rolling (forging) material manufacturing industry. The cost of raw materials such as stainless steel round bars, flat plates, coils, etc. generally accounts for about 90% of the cost of stainless steel pipe products. The rise and fall of raw material prices will directly affect the profits of the stainless steel pipe industry.

The downstream industries of industrial stainless steel pipes are mainly petroleum, chemical, natural gas, power equipment manufacturing, shipbuilding, paper making, machinery manufacturing, medical equipment, food processing, instrumentation, aviation, aerospace, and military industries. In recent years, the rapid development of these industries has led to the growth of the industrial stainless steel tube industry.