The domestic CNC tool faucet has raised the quotation beyond expectations, and the industry market demand is expected to gradually recover

On September 16, the domestic CNC tool leader WITAIK issued a price increase letter. The company said that from October 1, 2022, the prices of some of the company's products will be increased by 3%-10%. Since May, overseas brands have successively issued price increase letters, with price increases ranging from 4% to 15%. Since July, Sumitomo, Seco, and Sandvik products have increased their prices one after another. The price of related products will be raised by 9%-10%, and Walter will implement the new price list.

Essence Securities believes that the second round of price increases for overseas brands has come to an end, and the current market demand is still weak. In this context, WITAIK took the lead in issuing a price increase letter, exceeding market expectations. The main reasons for WITAIK's price increase this time are: 1) With the price increase of overseas brands, the company's product cost-effectiveness advantage has become more and more obvious; 2) It has increased the enthusiasm of dealers to replenish inventory, thereby stimulating short-term market demand; 3) The company's own products Performance and follow-up market demand are full of confidence.

Since mid-June, the demand in the tool industry has weakened due to the high temperature, and the demand bottomed out in August. The top manufacturers' interim performance briefings revealed that Oukeyi's orders are currently scheduled for one month, Sinovel's orders have been scheduled for nearly one month, and factory orders are still weak, but the demand from dealers is gradually improving, mainly because of high temperature After the weather was over, the factory resumed operation, and the demand for knives as consumables increased. At present, it is still in the stage of seasonal recovery of market demand, and the degree of recovery of the downstream manufacturing industry remains to be seen. It is expected that it will be transmitted to the factory orders at the end of September and early October, and wait for the demand to improve.