Will the raw material price back from the high position?

Harry Feng

Harry Feng

Product Manager and Engineer

Why the raw material price become higher and higher ?

 

These days the price of kinds of metal proudcts all bacome higher and higher. It mainly because the rising price of raw material: from CNY 3700 in Dec.2020 to CNY  4200. The price is quite crazy.  Many customers said : “The price is super high. I cannot afford it”

That’s too common these two days.  Some customers will be surprised by the high price. It also makes our exporting business become quite tough.

So i believe many people want to know: will the price come back, or it will continue rising up until to the sky?

 

Carbon Steel Wire Rod

From the outside

Firstly, let’s go to the reasons. On one hand, it’s caused by the political conflicts between Australia and China. As we all know, last year, Australia starts to ban the exporting iron minerals to China, which is the raw material of Chinese steel industry.  It leads to the first rising price last year and so is this year.

But Chinese government has implemented many ways to change this quo. They has positively develop the market in Africa and South America to alter the “Australia influence”.  In my opinion, in long term, this will decrease the cost of the metal products. But it would take some time. Let’s wait and see.

 

From the inside

 

Next, let’s talk about the reason from the inside.  Today is 12th March.  The CNPC is about to go to the end.   In the common cases, during this period, the price of the raw material will always go higher. It’s always so.  But with its ending, the price will be back to the normal price.

 

So my friend, if you intend to buy some metal products from China, and without a urgent project. Pls take your patience and have a wait. You will get a better price

So in a word, the price will be back to normal soon.

Let’s wait and see.

Our products: fencing ; wires; construction materials and kinds of customization metal products.

 

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Shengxiang is a fence and wire mesh products manufacturer since 1998. You can get direct competitive factory price from us. We always try our best to lower the cost to help our customers to win the market.

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