The market problem behind the ballpoint pen: the ball profit is calculated in millimeters

[Office Partner Information Center] The blank of China's ball-point pen tip steel has been filled by Taiyuan Iron and Steel in recent days. This "localization" has made the Chinese industry proud. At the same time, the other component of the pen, the ball, also attracted the attention of the reader: Has the ball been domestically produced? What is the current profit situation? After the investigation, it was found that the ball industry is currently in a relatively embarrassing situation.
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The head of a tungsten carbide ball manufacturer in Shanghai said in an interview that “a pen can’t sell much money, and the profit of the ball as a accessory is very low. Although the quantity sounds huge, the output value is not high, the single ball The profit of the beads is calculated in millimeters."
The ballpoint pen head is divided into a ball seat and a ball on the pen tip. The ball seat body is the pen tip steel pointed by the outside world. Because it has extremely high performance requirements for stainless steel raw materials, it is easy to cut and can not be cracked during processing. Previously, the production of pen steel has been equipment or raw materials for a long time. They are in the hands of Switzerland, Japan and other countries. In contrast, China has long been able to produce balls and export them.
According to the person in charge, “China has been able to produce stainless steel balls since the 1950s. However, ballpoint ball materials are mainly tungsten carbide, and stainless steel and ceramics are also used.” Tungsten carbide is a kind composed of tungsten and carbon. The hardness of the compound is similar to that of diamond, so the tungsten carbide ball has great advantages in wear resistance. In addition, tungsten carbide beads are also characterized by corrosion resistance.
At present, the annual demand for ballpoint pens in China is nearly 40 billion, which means that the total demand for all kinds of balls is also nearly 40 billion. Assuming that 40 billion are tungsten carbide balls, the total profit of the ball-point pen ball market will not exceed 40 million yuan at a single profit.
The extremely low profit determines that the ballpoint ball producers are basically small-scale private enterprises.
The aforementioned person in charge told the news () that "the companies that make the balls are small-scale enterprises, and there are more private companies. Our tungsten carbide balls produce billions of pieces per year, and the market share is less than 20%. There are three or five companies in the country, and the rest are smaller companies."
Take the stainless steel ball company as an example. The stainless steel ball and bead enterprises are mainly distributed in Dalian City, Liaoning Province. Xiaobian has visited one of Dalian Yuming Steel Ball Co., Ltd., and the national enterprise credit information publicity system shows that the company is located in Da Zhao Village, Taipingling Township, Zhuanghe City, Liaoning Province, with registered capital. 500,000 yuan. The most recent annual report on data disclosure is the 2013 annual report, which shows that the company employs only 5 people, with a total operating income of 340,000 yuan and a net profit of 20,000 yuan.
The legal representative of Dalian Yuming Steel Ball Co., Ltd. said in an interview that “stainless steel balls are mainly concentrated in Dalian. We have less hard alloys and specialize in stainless steel balls.” In fact, stainless steel balls are facing harshness. The market was eliminated and eliminated by tungsten carbide balls. The person in charge mentioned that “stainless steel balls are relatively low-grade balls, and may be done in areas where labor is cheaper. But now a little brand-name ballpoint pens use tungsten carbide balls.”
It is these small-scale private enterprises that usually choose to produce medium and low-grade balls under the principle of “survival priority”. The person in charge said, "Our high-end ball can also be done. The key is that the market can't accept it, it can't be sold, or the demand is very small, then there is no need to do it." In addition, the fierce market competition between small enterprises. It also allows companies to take care of high quality. The person in charge said frankly, "Many domestic enterprises are driving down prices, which will inevitably lead to relatively cheap materials, otherwise it will be difficult to establish a foothold in the market."
At present, high-end tungsten carbide ball production accounts for less than 10%, mainly based on exports. The person in charge mentioned that “the high-end tungsten carbide export ball can be 20%-30% higher than the domestic tungsten carbide ball price, but the profit margin is not very high, because the high-end ball is relatively The requirements are relatively high.” The total export volume of tungsten carbide balls is more than 10 billion.

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