July 14, 2022

China mold making companies loss competitiveness in $ fighting

blog aco mold

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.

Related Blogs

blog aco mold
Erucamide blooming problem on elastomer

Q: I am facing a blooming problem of Erucamide (Er) from an elastomer, additive content is around 0.15 – 0.20%. The more I add, the shorter the period of time …

thermoset vs thermoplastic
Thermoset vs Thermoplastic: What You Need to Know

Overview Within the field of polymer science, it’s critical to understand the distinctions between thermoset and thermoplastic polymers. These materials are used in a variety of ways by scientists, engineers, …

injection molding cost
Injection Molding Cost Breakdown: What You Need to Know

Introduction to Injection Molding Costs Introduction to Injection Molding Costs The cost of injection molding, a cornerstone in the fields of manufacturing methods, product development, and mold production, is a …

blog aco mold
Pros and Cons of Injection Molding vs Compression Molding

When the hot material is injected into the cavity it will shrink as it cools down (Pressure /Volume/Temperature or PvT diagrams will show you this). For that reason a pressure …

Tell us your request right now and contact us today about getting started on your next project together!

Email:
sales@acomold.com

Or Fill Out The Contact Form Below:

Support Your Business with Better Molding Solution

Contact Info
Copyright © 2023, ACO Mold. Terms of Service and Privacy Policy. All rights reserved.  Powered by ACO MOLD.
1 1.png

Join Our Network

Please email to sales@acomold.com
or fill out the contact form below: