Analysis of glass price fluctuations

Under the influence of the world financial crisis in 2008, the world economy has been greatly affected. Many products, especially products with a large number of exports, have been hit hard. The glass industry is no exception. Not only has sales volume fallen sharply, but also export prices have fluctuated. The factors influencing the price change of the glass industry are not limited to the development of the upstream and downstream industries in the glass industry, but also the macroeconomic impact of the country, changes in the market consumer psychology and so on. In order to boost the economy, the state launched a “four trillion” economic stimulus plan. Local governments have also issued a positive development plan. Under the impetus of the national economic stimulus policy, the glass industry quickly made a shadow, the demand increased, the price rose, and the market psychology was quite positive.

Market environment factors Under the conditions of the socialist market economy, if an enterprise wants to survive and develop in increasingly fierce competition, it must make its products have strong market competitiveness and continue to adapt to changes in the market. Therefore, the market plays a decisive role in the development of the enterprise. There is a market for products, companies can make profits, lose a piece of the market, companies will lose part of the benefits. It is also difficult for a product-free company to survive. Therefore, business development must establish a market-oriented policy and follow the law of supply and demand. When the supply of goods exceeds demand, producers will compete on prices for the sale of goods, and the price of goods will fall. When demand exceeds supply, the buyer will Get goods and increase prices, so that prices rise, so the cycle, the market is like an invisible "big hand" regulates the price of goods, so that supply and demand reach a balance, prices eventually tend to balance prices.

The enterprise's own factors The business activities of commodity circulation companies must be based on their own resource endowments. The so-called resources refer to the sum of the effective factors controlled or possessed by the commodity circulation enterprises. The resources of the commodity circulation enterprises are divided according to whether they are easy to identify and evaluate, and can be divided into tangible resources and intangible resources. Tangible resources refer to visible and energetic assets such as funds and equipment, including financial resources, physical resources, organizational resources, and human resources. Intangible resources refer to assets that have been rooted in the history of commodity circulation companies, accumulated over a long period of time, and are not easily identifiable and quantifiable, such as their innovative capabilities, reputation, and trade secrets. The most important one is the core competence of a company. The core competitiveness of a company is the competitive advantage of a commodity circulation company in terms of sustainability, the integration of resources with strategic value, and the formation of competitiveness through sublimation. It includes human resources. , technology system, management system, information system, corporate values, etc.

The cost factor cost, also known as the production cost, is the monetary expenditure of the various production factors purchased by the company during the production process. That is, the material costs and labor costs paid by the company in the production and operation process. Commodity cost is one of the main contents that determine the price of a commodity. It generally includes production costs, sales costs, storage costs, and labor costs. Firms generally increase production to reduce commodity costs, thereby reducing commodity prices. The soaring cost price will also prevent companies from lowering the selling price of their products. National policy factors include relevant policies and laws and regulations, such as tax laws, monetary policies, fiscal policies, interest rate policies, exchange rate policies, etc. The implementation of a loose monetary policy in the first phase increases the supply of money, leading to inflation and causing commodity prices to rise. Implementing a proactive fiscal policy, reducing taxes, indirectly increasing money supply, and causing price increases; the country adopting a low interest rate policy to encourage consumption and increase the market Demand has led to an increase in commodity prices. Conversely, a country's reduction in the supply of money, increase of tax revenues, implementation of high interest rate policies, etc. can all lead to a drop in prices. In addition, the exchange rate policy can also cause the rise of domestic price levels to a certain extent.

Psychological factors Circulation channels and managers are subject to changes in mental state after being affected by various aspects, often resulting in mood swings, misjudgments, blind buying, or frantic behavior, which is often caused by the price of glass products in a certain period of time. An important factor for falling or rising.