Cost analysis: diamond cutter head price has dropped to the bottom line

It has been 20 years since the emergence and application of diamond saw blades in China, for 20 years. The price of diamond saw blades has dropped dramatically at an alarming rate, reaching an incredible degree. Since the beginning of the 21st century, this downward trend has not slowed down. At present, there are still large differences in the price of diamond saw blades across the country. The lowest is the Shandong and Fujian markets. Take the Φ1600 circular saw blade as an example. The Jinan cut in Jinan, Shandong Province is between 320 and 350, and the Wulian market. Cut the five lotus heads to a minimum of 1,000 yuan to pay, Fujian Fufu Ding black knife head is also more than 300 yuan a pay. As a result, the majority of diamond saw blade manufacturers are greatly confused, the price of diamond cutter head can be reduced to what extent?

Since entering 2006, the market situation has undergone new changes. First, we look at diamonds. Although China’s current diamond production is the world’s number one, actual production has exceeded the consumption in the written generation, but there are still investors who are paying attention to it. Note that this strong competition must lead to a decline in diamond prices. Secondly, due to the promotion and use of powdered catalysts, the increase in diamond production and the decrease in unit cost have led to a decline in diamond prices. However, the good times have not been long. Since the beginning of this year, the price of the main raw material for diamond production has risen. The price of raw materials WC, which consumes the top material of the material, has risen 2-3 times, and the increase in energy prices has inevitably led to the rise in diamond prices. However, in fact, the price of diamonds is difficult to rise, which depends on the technical level and management level of each manufacturer. In general, the price of diamonds will not fall again, and will rise steadily, but I am sure that some diamond manufacturers have to close down!

As the second cost of diamond cutter production: the price of diamond powder began to rise in 2005, and the increase has been even more amazing this year. Taking tungsten carbide as an example, the original high-quality WC was 80 yuan/kg in 2003, and now it is 230 yuan/kg, which has almost tripled. Therefore, for every Φ1600 cutter metal powder, the price is about 20~30 yuan, and the profit per knife head is only about 50 yuan. Therefore, the increase in the price of metal powder has increased the cost of the diamond cutter head.

On the other hand, the price increase of energy also causes an increase in the processing cost of the cutter head.

In summary, I believe that the price of diamond cutters will not fall again! But it is impossible to raise prices, this is the result of vicious competition!

In order to survive, it is necessary to innovate in the production technology of the diamond saw blade. The following programs are available for customers' reference:

1. Diamond cost:

Reduced – including two measures:

One is to reduce the diamond concentration. This requires the use of a bond that is excellent in performance, strong in holding power, and capable of improving diamond utilization.

The second is the use of coarse-grained (35/40) and fine-grained (70/80) diamonds, which are much cheaper than medium-sized (40/70) diamonds. Of course, there must be a corresponding metal bond at this time.

The third is to use all grades of low-grade diamond (ie, 0.8 yuan / ct or less), and it has been proved that this scheme is feasible in combination with the corresponding metal binder.

The fourth is to use high grade (16kg or more), low concentration. This solution must use Caston's high-speed metal bond to achieve low cost and high performance.

2, reduce the cost of bonding:

As early as one year ago, this situation was estimated, and the research of metal-type binders was carried out, and satisfactory results were obtained. The practical application showed that the new binders were slightly lower in price than the original binders, and the performance was better. The effect of the price increase of metal powder has been offset, and it has been widely promoted.

3, reduce processing costs, this aspect must be resolved by manufacturers through strengthening management and other measures.

In summary, the price of the diamond saw blade has been reduced to the end, and will not fall again. The key lies in how manufacturers introduce new technologies and strengthen management to obtain benefits.  

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