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Rising electricity prices and slim profit margins: grinding companies join forces to break the deadlock | Members of the All‑Grinding Committee’s Henan Chapter visit Yeda New Materials.

Release date:

2026-03-13

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Editor’s Note:
On March 12, a delegation of members from the Henan District of the All‑China Federation of Industry and Commerce visited Yeda New Materials. Against the backdrop of rising electricity prices and mounting profit pressures in the industry, participants engaged in candid discussions to explore ways forward. We extend our gratitude to the association and all colleagues for their visit, and look forward to collaborating with more industry partners—drawing inspiration from dialogue and growing together through cooperation. Below is a report on this event, shared with you.

On March 12, Deng Bin, Executive President of the All-Mo Committee, and Bai Ning, Secretary-General, led a delegation of Henan-based member enterprises on a visit to Henan Yeda New Materials Technology Co., Ltd., where they engaged in an in-depth discussion on the challenges currently facing the company’s development.
The visiting delegation toured Yeda New Materials’ laboratory, production workshop, and intelligent data center. Chairman Lü Fengming outlined the company’s product portfolio and its application‑driven development trajectory. He emphasized that robust application testing is a key pillar of customer service, and that the company must remain firmly customer‑centric, ensure seamless coordination between upstream and downstream partners, and effectively address quality issues.

During the Q&A session, participants discussed the pressure that rising electricity prices are placing on business operations. Some companies noted that, since last December, while overall shipment volumes have remained substantial, sustained increases in electricity rates and price hikes for certain raw materials have driven production costs steadily higher. Meanwhile, product prices have proven difficult to raise, further squeezing corporate profit margins.
In the realm of foreign trade, the depreciation of the exchange rate has further eroded export margins, leaving companies grappling with the dual challenges of difficulty in raising prices and thin profit margins. There is broad consensus that, under the current circumstances, retaining customers is paramount, and price hikes should be approached with caution. Some firms have adopted a strategy of “lowering prices first, raising them later,” seeking to strengthen customer relationships by maintaining product quality and locking in long-term pricing.

Executive Chairman Deng Bin pointed out that the current market is characterized by a pronounced oversupply, with enterprises generally lacking pricing power and overall demand remaining weak. In response to this situation, companies must proactively embrace change, seek breakthroughs in product innovation, and enhance their core competitiveness by developing new products and exploring fresh approaches—only then can they take the initiative in an increasingly fierce competitive landscape. In the new year, the All‑Grinding Committee will intensify its outreach efforts to gain a deeper understanding of the practical challenges faced by businesses. Through ongoing visits and exchanges, it will foster the sharing of best practices and the alignment of resources among member companies, enabling them to collectively address evolving market conditions.
Attendees unanimously agreed that Yeda New Materials’ practical experience in technological R&D and refined management is highly instructive. Through this visit and exchange, participants further broadened their perspectives and strengthened their confidence.