Since 2007, domestic cold-rolled silicon steel sheet pig iron enterprises have been greatly affected by the rise in upstream raw materials, constantly adjusting the ex factory price of cold-rolled silicon steel sheets and transferring cost pressure to downstream enterprises. As an important raw material for motors, copper futures rose from 55207 yuan per ton at the beginning of the year to 67801 yuan per ton, an increase of 22.8%; Cold rolled silicon steel 50WW800 has increased from 5486 yuan per ton to 6657 yuan, an increase of 21.3%; The price of DR510 hot-rolled silicon steel barrel has increased from 5130 yuan per ton to 5730 yuan per ton; The increase reached 11.7%, and some hot-rolled silicon steel increased by as much as 20%. In addition, the rise in raw materials such as castings has made the cost of the motor industry even worse.
Taking the micro motor industry as an example: Silicon steel sheet is one of the important raw materials, accounting for about one-third of the total production cost. Moreover, due to the situation of oversupply in the medium and micro motor industry, the competition for victory is considerable and explosive. Faced with the significant increase in the unit price of silicon steel, there are many difficulties. 
In response to the increase in raw material unit prices, although the motor industry has also raised commodity unit prices, the increase is far lower than the increase in costs. Some companies that are inherently unprofitable and have low profits have brought significant impact. On the other hand, without a certain level of regulation in the motor industry, it is very, very difficult to achieve the recovery of investment costs, which actually poses a risk for enterprises to expand their production capacity. This in turn constitutes the overall situation of agent growth and decreased output value.