In recent times, the price of steel, a crucial raw material in the fastener manufacturing industry, has been experiencing a sharp upward surge. As a professional fastener production factory, we feel obliged to inform our overseas customers about this development and offer some sound advice.
The reasons for this significant increase in steel prices are multi-faceted. Firstly, global economic recovery has led to an uptick in demand for steel. As economies around the world gradually rebound from the impacts of various challenges, industries such as construction, automotive, and machinery have all seen a growing need for steel, driving up prices. Secondly, fluctuations in raw material costs for steel production have also contributed to the price hike. The prices of iron ore, coal, and other essential inputs have been volatile, adding to the production costs of steel mills and ultimately resulting in higher steel prices. Moreover, supply chain disruptions have played a role. Delays in transportation, logistical challenges, and production disruptions at some steel mills have reduced the available supply of steel on the market, further pushing up prices.
For example, from September 23 to October 9, the Lange Steel absolute price index rose from 3485.0 yuan to 4020.4 yuan, with a growth rate of 15.36% in just half a month. According to data released by the National Bureau of Statistics, compared with mid-September, the price of rebar increased by 149.5 yuan/ton in late September, with a growth rate of 4.6%, becoming one of the leading rising varieties among 50 important means of production in the national circulation field. In addition, on September 29, the price of building materials in the Shanghai morning market increased by 70 to 80 yuan, and the current thread price is between 3330 and 3460 yuan/ton; the price of building materials in Beijing rose by 150 yuan; the price of building materials in Jinan rose by 160 yuan. The price of hot-rolled coils in the Shanghai market rose by 110 yuan, and the current mainstream quotation for 1500 is between 3440 and 3450 yuan/ton; the price of hot-rolled coils in Jinan market rose by 180 yuan; the price of cold-rolled coils in Wuhan market rose by 160 yuan.
There are several compelling reasons for our overseas customers to place orders in advance. Firstly, by placing orders now, customers can lock in the current price. With steel prices continuously on the rise, this is a significant advantage as it helps them avoid the increased costs that would come with future price hikes. Customers can sign contracts at the current price, ensuring that their procurement costs are not affected by market fluctuations. Secondly, advance ordering can guarantee timely supply. As steel prices increase, there may be a shortage in the supply of raw materials. By placing orders in advance, we can allocate resources and arrange production in a timely manner, ensuring that customers’ orders are delivered on time. This prevents any disruptions to customers’ production schedules due to untimely supply. Moreover, when customers place orders in advance, they show their commitment to us, and in return, we can offer better service. We will give priority to the production tasks of these customers, ensuring that their needs are met promptly. At the same time, we will provide more excellent after-sales service, leaving them without any worries.
Steel, as the main raw material for fastener production, its price hike directly leads to an increase in the production cost of fasteners. Under the current market circumstances, we have to adjust our product prices accordingly to ensure the normal operation and sustainable development of our enterprise. However, this adjustment will undoubtedly impose a certain economic burden on our customers.
In the current market situation, placing orders in advance is a wise choice for overseas customers to reduce procurement costs and ensure timely supply. As a fastener production factory, we will continue to provide high-quality products and services to our customers and work together with them to face market challenges.
Finally, we once again remind our overseas customers that the upward trend in steel prices may continue for some time. To avoid unnecessary losses, we recommend that customers make decisions as soon as possible and place orders in advance. Let us join hands to meet market challenges and achieve mutual benefits and win-win results.