"Two squeezes" is a morbid state --- Speaking of the latest economic information released by the National Bureau of Statistics
2018-06-19 01:00:36
The term “two squeezes†appears in this newspaper. It was first used to describe the rising price of raw materials in the upper reaches of the fertilizer industry, resulting in rising costs and a dilemma in which the lower reaches can not easily raise prices in order to protect the interests of farmers. However, the author finds that from the recent national economic situation announced by the National Bureau of Statistics for the first three quarters, the “two squeezes†situation is universal.
According to the information released by the National Bureau of Statistics on the 20th of this month, in the first three quarters of this year, the retail price of commodities in China rose by 0.8% year-on-year, and the ex-factory price of industrial products rose by 5.4%, while the purchase price of raw materials, fuel, and power rose. 9.2%. In other words, the retail prices of domestic product terminals rose less than 1% year-on-year in the first three quarters, while the purchase prices of raw materials, fuel, and power rose by nearly 10%.
The oil and chemical industry is roughly the same situation. The ex-factory price of crude oil rose by 33.2% in September from the same month of last year, and the ex-factory price of coal rose by 21.7% from the same month of last year. Of the 139 chemical products tracked by the China Petroleum and Chemical Industry Association, the price of products in August was higher than that in July. There are 69 kinds of decline, accounting for 49.6%; there are 59 kinds of increase, accounting for 42.4%. The price drop has risen more than that.
One end is the rise in the price of raw materials, and the other is the limited increase in the prices of end-products. From this, it can be seen that industrial enterprises are generally suffering from the pressure of “two squeezes†after being under pressure. In an analogy, "squeezing on both sides" is like a person swells and cannot digest it. People have to swell their bodies for a long period of time. The long-term “swelling†of the company will also lead to weight loss, which means that the benefits will be reduced. This is evident from the fact that the benefits of chemical fertilizer companies have not always been raised. Obviously, for enterprises, the "two squeezes" is a morbid state.
Why do companies have "two squeezes"? It is generally believed that there is a problem with the supply and demand of economic organisms, that is, the scale of investment is too large and the growth of consumption capacity is slow. This is actually the old fault of our country’s economy. Several Prime Ministers once had trouble brainstorming about "domestic demand." Someone who manages this old problem is also called a "structural problem." Those who engage in economics often say that they must set aside sales, but in fact it is very difficult to do this in our country. The reason is also very simple. Most of the downstream consumption links have already entered the market. Their spending power is determined by personal income or the benefits of enterprises (mostly small and medium-sized enterprises). If the country does not have large-scale tax cuts or capital increase, it cannot happen. The rapid increase in spending power. This is not the case for upstream investment. The vast majority of companies that can now compete in energy and raw material investment are state-owned and state-controlled enterprises. These enterprises can borrow large sums of money from state-owned banks and can receive strong support from government departments. The scale of investment completed with such an imposing momentum is a result of the spending power of the vast majority of the “spreading soldiers†on the lower reaches. When we look around us, the ethylene projects, the coal-to-oil projects, and the integrated projects that are led by the provincial and municipal leaders themselves are all hundreds of billions of investment, and what people are most worried about is the downstream of these projects. Market capacity. If this concern really becomes a reality, it will be a serious "two-headed squeeze" for related companies!
From this we can see that the "two squeezes" has done great harm to economic development, especially the corporate profits. It is a typical dissonance in the economic life of our country. Now that we want to create a harmonious society, why not aim at the next one and let our economic bodies become healthy?
According to the information released by the National Bureau of Statistics on the 20th of this month, in the first three quarters of this year, the retail price of commodities in China rose by 0.8% year-on-year, and the ex-factory price of industrial products rose by 5.4%, while the purchase price of raw materials, fuel, and power rose. 9.2%. In other words, the retail prices of domestic product terminals rose less than 1% year-on-year in the first three quarters, while the purchase prices of raw materials, fuel, and power rose by nearly 10%.
The oil and chemical industry is roughly the same situation. The ex-factory price of crude oil rose by 33.2% in September from the same month of last year, and the ex-factory price of coal rose by 21.7% from the same month of last year. Of the 139 chemical products tracked by the China Petroleum and Chemical Industry Association, the price of products in August was higher than that in July. There are 69 kinds of decline, accounting for 49.6%; there are 59 kinds of increase, accounting for 42.4%. The price drop has risen more than that.
One end is the rise in the price of raw materials, and the other is the limited increase in the prices of end-products. From this, it can be seen that industrial enterprises are generally suffering from the pressure of “two squeezes†after being under pressure. In an analogy, "squeezing on both sides" is like a person swells and cannot digest it. People have to swell their bodies for a long period of time. The long-term “swelling†of the company will also lead to weight loss, which means that the benefits will be reduced. This is evident from the fact that the benefits of chemical fertilizer companies have not always been raised. Obviously, for enterprises, the "two squeezes" is a morbid state.
Why do companies have "two squeezes"? It is generally believed that there is a problem with the supply and demand of economic organisms, that is, the scale of investment is too large and the growth of consumption capacity is slow. This is actually the old fault of our country’s economy. Several Prime Ministers once had trouble brainstorming about "domestic demand." Someone who manages this old problem is also called a "structural problem." Those who engage in economics often say that they must set aside sales, but in fact it is very difficult to do this in our country. The reason is also very simple. Most of the downstream consumption links have already entered the market. Their spending power is determined by personal income or the benefits of enterprises (mostly small and medium-sized enterprises). If the country does not have large-scale tax cuts or capital increase, it cannot happen. The rapid increase in spending power. This is not the case for upstream investment. The vast majority of companies that can now compete in energy and raw material investment are state-owned and state-controlled enterprises. These enterprises can borrow large sums of money from state-owned banks and can receive strong support from government departments. The scale of investment completed with such an imposing momentum is a result of the spending power of the vast majority of the “spreading soldiers†on the lower reaches. When we look around us, the ethylene projects, the coal-to-oil projects, and the integrated projects that are led by the provincial and municipal leaders themselves are all hundreds of billions of investment, and what people are most worried about is the downstream of these projects. Market capacity. If this concern really becomes a reality, it will be a serious "two-headed squeeze" for related companies!
From this we can see that the "two squeezes" has done great harm to economic development, especially the corporate profits. It is a typical dissonance in the economic life of our country. Now that we want to create a harmonious society, why not aim at the next one and let our economic bodies become healthy?
Frp Tank,Membrane Housing Co., Ltd. , http://www.nspprpipes.com