Under the condition of market economy, cement enterprises are in the state of unorganized and anarchic blind production. The proportional relationship of production among enterprises is not through unified planning and arrangement of production, but through competition among enterprises and fluctuation of market prices to regulate production. Enterprises are not clear about the market demand for cement, and the fluctuation of the only market price becomes a barometer for enterprises to understand the market supply and demand situation.
In a certain period of time, cement has a reasonable price recognized by the market, maintaining the price ratio with other commodities (such as steel, coal). How much is the reasonable price of cement? Without discussion, it is clear that the price of cement always fluctuates around a reasonable price, but it will never be out of line, and the price of cement will not fluctuate with the price of steel and coal. The supply of cement exceeds the demand, the price exceeds the reasonable price, the enterprise obtains the excess profit, the supply and demand balance, the enterprise obtains the normal profit, the supply exceeds the demand, the production capacity is excessive, the price is lower than the reasonable price, the enterprise reduces the profit.
Cement homogenization, to some extent, competition is price competition, and the essence of price competition is cost competition. Cost is the dividing line between profit and loss. Cost is closely related to the success and failure of business operation. Price competition brings two results. First, only when the price is higher than the cost, the operation can make money. Therefore, competition encourages enterprises to continuously innovate in technology, improve labor productivity, and strive to reduce costs. Two, polarization. Excellent enterprises have strong ability to resist market risks, strong operation and a higher level, while backward enterprises can not withstand the price storm, heavy burden, and are merged and reorganized or withdrawn from the market.
Involution, popularly speaking, "fighting in the nest" is actually competition. In rational competition, enterprises can not only make profits, but also attack their competitors. The cement production cost of enterprise a is 220 yuan, and the production cost of enterprise B is 240 yuan. Enterprise a sells cement at a price of 230 yuan, which not only makes a profit of 10 yuan, but also puts enterprise B in a very disadvantageous position. This kind of example often happens around us, too numerous to mention. Vicious involution means vicious competition, irrational competition, price war, dumping at low prices, and even sale at the expense of the interests of enterprises. The price is lower than the production cost, which is the concrete manifestation of malignant involution. The capital consumed by the enterprise can not be compensated and losses occur. This situation, even if the enterprise has temporarily stabilized its market share, will continue for a long time, resulting in insufficient income, difficulties in capital turnover, difficulties in purchasing means of production, wage arrears and a series of problems, and finally the capital is gradually exhausted, facing the dilemma of maintaining production. Malignant involution not only makes enterprises unprofitable, but also runs counter to the law of market price, which damages the overall interests of the industry and hinders the high-quality development of the economy.
It is reported that from January to May this year, cement enterprises lost 3.4 billion yuan, 55% of the loss, and the whole industry lost 1 billion yuan in the first half of this year. Note: First, regulated enterprises are better than regulated enterprises. As far as I know, most of the grinding stations did not lose money, but their profits dropped sharply year on year. Cement enterprises without mine resources have higher production costs than market prices and suffer greater losses. Second, it is very important to regulate the price self-discipline of enterprises. Large groups and enterprises occupy half of the market and control prices, so they should take the lead in playing an exemplary role in stabilizing prices and market order. Malignant involution should be exposed and resolutely stopped to safeguard the interests of the cement industry. During the peak period of the
cement industry, the annual profit reached 180 billion yuan. In recent years, it has gone from bad to worse. Last year, it was 35 billion yuan. In the first half of this year, the whole industry lost money and experienced a cliff-like decline. Among them, the vicious competition of involution is an important factor.
As the 730 meeting of the Political Bureau of the Central Committee put forward: for some structural surplus industries, support industry mergers and acquisitions, smooth market exit mechanism. We should adhere to the principle of market orientation and government guidance, support leading enterprises to merge and reorganize problem enterprises, improve industry concentration, promote large-scale and intensive operation, improve the relationship between supply and demand, and prevent involution competition.
