Leading knife manufacturer orders are full. Industry insiders expect that in Q2 this year, capacity utilization and net profit margins will remain high.

Reporters learned from multiple industry chain insiders that the CNC insert industry currently has strong supply and demand. In this year’s Q1, the capacity utilization rate of CNC inserts at leading manufacturers has risen significantly compared with the same period last year. The order lead times for different product categories are about 2–3 months. Driven by both higher volume and rising prices, the product net profit margin increased year over year. A spokesperson at a leading cutting-tool manufacturer said that in the earlier period, the price increases’ contribution to the net profit margin was greater than the contribution brought by volume growth. Relying on earlier inventory reserves of both raw materials and finished goods, it is expected that in Q2 this year, capacity utilization and the net profit margin will remain at a high level. (China Finance and Economics News)

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