The high cost and low efficiency of the die steel industry have been maintained for a long time. Affected by the upstream and downstream industries, the profits of China's mold industry are now thinning. The die steel industry is an intermediate industry relative to its upstream and downstream industries. The upstream raw material industry keeps on increasing prices, while the downstream mold industry keeps declining prices. The die steel industry is trapped at both ends.

In recent years, with the rising prices of iron ore and other resources, the cost of production in the die steel industry has also been continuously increasing. Coupled with the continuous rise in labor prices and logistics prices, the profit margin for China's die steel industry has been limited. However, due to the rapid expansion of production capacity in the steel industry in China, coupled with the global economy being hit, the production capacity of die steel has been excessively oversupply, and price competition encourages everyone to reduce prices. Although China's mold industry is continuously developing, China's mold industry has been integrated into the global economic environment. Therefore, China's mold industry is also affected by the world economic recession, and the profit of the mold industry is also declining. When they purchase the raw material mold steel, they will strongly reduce the price in order to reduce their own production costs.

Under the influence of the upstream and downstream industries, the profits of China's die steel industry are gradually falling, thin as a flap.