First, in 2008 constant prices of raw materials, resulting in high-priced hardware to run the industrial market
　　Hardware aspects of the domestic market, prices of sanitary hardware category in 2007, following the wave of the fourth quarter rose after the early March 2008 was slightly up again. Began in 2007, the international price of copper rose 66%; London copper futures prices from the start the first round of 1800 U.S. dollars / ton up to 7300 U.S. dollars / tons, up a total of more than 300%; the production of stainless steel required for nickel and other metal materials a sharp rise in the price; the beginning of May 2008, ceramics enterprises increases, tiles or 8.6 percent on average, in some out-of-stock; Baosteel and the world‘s leading iron ore producers Rio Tinto, one of Australia on 2008 annual benchmark iron ore price agreement, Rio Tinto mine of PB powder, mineral powder Yang Di, PB ore block will be the basis of 2007 prices rose 79.88 percent, 79.88 percent and 96.5 percent, the result no doubt of the domestic iron and steel enterprises to the life and death ... ... It can be said that these figures are shocking, metal industry the prices of raw materials is growing, high-priced hardware products to run it is not surprising.
　　Over the years our country as the world‘s largest steel-producing countries and the world‘s most populous country, has been making metal tools and the raw materials of the advantages of low labor costs in recent years has maintained a stable export growth, making China the world has become a tool Hardware, one of the major exporting countries. However, with the national macro-control policy, the main raw materials since last year a significant increase in steel prices, lower export tax rebate rate of the country, as well as by the international environmental impact of the increasing appreciation of the yuan, coupled with the 2008 "Labor Contract Law" brought about by the implementation of increase in labor costs, making the domestic manufacturing sector, the gradual deterioration of the environment, on labor-intensive metal industry significantly. At present, the development of the industry trend of hardware is not optimistic, and even can be said to be fairly severe.
　　Second, nearly seven years of market operation situation of metal industry

　　In 2006, China‘s metal products industry reached 812.352 billion yuan market scale, in which structural metal products accounted for 29 percent market share, slightly higher than the proportion the number of enterprises, enamel products of the metal products manufacturing industries accounted for only 1.09%.
　　Fourth, the internationalization of domestic competition over the next few years will be the development of China‘s hardware industry trends
　　1, China as a global hub for hardware manufacturing firm will be further
　　As China‘s integration into the global economic environment to speed up the process, as well as the rapid rise of economic power, China has become the world‘s most dynamic economic region. China‘s economy to improve facilities, more mature industry and labor costs, which have become a global manufacturing center hardware comparative advantages, the development of hardware manufacturing export-oriented characteristics.
　　Center to enhance the performance of the first hardware products in recent years the overall growth in exports: The exports of metal products were higher than the growth rate of output growth, higher sales in the domestic market growth rate; the main electrical products Hardware full bloom, not only power tools, hand tools, building hardware products, these traditional products of export growth in the high category, but not before the kitchen exports electrical products and sanitary products of export growth in 2004 is also very obvious. Huge market and center of gravity will further attract multinational hardware manufacturing center of the transfer to China.
　　2, inter-firm co-operation would significantly strengthen the
　　In the global competitive environment, in order to obtain a favorable competitive position and enhance competitiveness, industrial capital is another theme running industry. SUPOR in 2004, Vantage has listed Hongbao listed are for the positive efforts of 10,000 and the operation of capital markets will not be with the Guangdong Meiya failure to stop the reorganization. From the capital perspective, the main characteristics of the current expansion of capital on the rise. From competitive behavior, the inter-enterprise cooperation in the sharing of resources is increasing.
　　3, enterprises will further aggravate the polarization
　　The next few years will be a high-speed hardware industry shock period, which brought high-speed impact is a direct consequence of the current hardware camp kitchen brands to expand the trend of polarization. Is expected over the next few years can really survive in the market, there is no hardware business is now so much. However, this high-speed hardware industry shocks will lead to great opportunities, the result of concussion will be more rational to make the operation of the market.
　　4, sales channels and competition between the increasingly competitive
　　Kitchen products as a result of an oversupply of domestic hardware, the quality of the pressure of increased sales channels to become one of the key competitive factors, the parties to the increasingly fierce competition for channels. On the one hand, manufacturers of kitchen electric strengthened the control of the retail terminal, and strive to reduce the marketing chain, marketing cost savings, so that the direction to become a professional sales channel development, enterprise sales model can adapt to diverse towards the direction of the market. On the other hand, the development trend of sales of large home appliance chain store so that the rising status of the industry to enhance the control, participation and triggered mainly driven by the manufacturer of price competition. Large retailers, with its broad market coverage, the procurement scale and cost advantages, product pricing, payment on delivery, such as control of production capacity will be increased.
　　5, market competition will shift to high-quality, high-tech products
　　With the competition in-depth, hardware industrial chain‘s profit margins at all stages in the compression, reducing the price of the room for growing. More and more enterprises recognize that price competition alone can not be based on core competencies, rather than the direction of the long-term development in an effort to explore new development. Many hardware companies technology has increased the investment in the development of new products with high technological content, product differentiation will be as long-term plan for the development of enterprises to seek new market demand, the establishment of a new economic growth points (such as small household appliances and access to other similar industries) in order to achieve the sustainable development of enterprises.
　　6, the integration of domestic and foreign enterprises will further accelerate
　　Hardware domestic enterprises to improve their own strength, to expand the international market more quickly through a variety of means to speed up the integration and foreign enterprises to improve product quality and enhance our competitiveness. Continue to expand in the United States, Japan and other traditional markets, while countries in Southeast Asia, the Middle East, Russia, Europe, and Africa will be the full flowering.
　　Overall, China‘s hardware industry will continue the momentum of structural adjustment, but at the same time will continue to be some bright spots. Hardware companies will become increasingly polarized situation, a number of meeting market competition will be out of the market through various channels, competition, and the hardware giant will gradually surface.