On March 2014, Department of the Chinese government take one more step forward, expanding the floating range of the RMB against the U.S. dollar. This means that you can have greater volatility compared to the value of the RMB in the past. Since then, the value of the RMB began to fall heavier.
Due to the devaluation of the RMB, raw materials and industrial inputs prices, China mold making costs declined sharply. In the period of rising manufacturing costs, Chinese mold companies cannot compete on price, but the cost fell sharply restore the ability to compete on price, now they are able to lower product prices, regained the lost business.
With the slowdown in domestic economic development, China mold making prices have been shrined for 24 months in row. Steel prices lower than the 1994 price level for more than five months, has reached its lowest level in two decades. Other metal prices, such as copper, aluminum, nickel and lead also fell sharply, while the plastic price also declined. The raw materials price for Chinese mold maker reduce massively, this would give a breath to most of the Chinese mold companies from the inflation and labor cost increasing.
But this is not a good idea, rather than Chinese mold makers set the price lower than other factories, it means more to invest on innovation and provide molds with unique value, establish more meaningful relationships with their western customers.