Raw material is increasing, what influence to us？

The impact of the price rise of raw materials in the iron and steel industry on the manufacturing industry is that the cost rises rapidly, resulting in many enterprises dare not produce even if they have orders, because if the cost exceeds the sales price, there will be a loss. Since the cost has risen, why dare not raise the price for end consumers? What is the factory worried about? I personally consider that there are two main reasons.

Firstly, end consumers are very sensitive to price changes. Even if the price of any commodity increases by only one or two yuan, they are likely to give up this brand and choose other brands. Ordinary people don't have much money, so they are very concerned about price fluctuations. In other words, there is serious overcapacity and limited scientific and technological level, resulting in weak market bargaining power and no price protection.

Secondly, for consumers, because ordinary people do not have much spending power, the income of most families increases slowly, but the cost of living is gradually increasing, which makes people cautious about the consumption of industrial commodities. This is what we call the rise in the price of upstream raw materials, which is difficult to be directly transmitted to the final consumers, Because consumers are hard to bear.

So for the consumers, they do not consider the raw material rise or not, they just think about how to buy a very cost-effective product with limited money.