Since the beginning of this year, the price of gate hardware raw materials has risen rapidly, leading to the increase in the prices of various gate wheels and accessories. Based on years of experience in the industry, we believe that the possibility of a substantial increase in raw material prices in the second half of the year is unlikely, and at the same time, the possibility of a substantial decline is relatively low. The most likely trend is to maintain a sideways movement and rise slightly. Therefore, in the second half of the year, we believe that raw materials will have little impact on the price fluctuations of gate hardware products.
However, at the same time, fluctuations in the exchange rate of the RMB against the US dollar are likely to be the factor that has the greatest impact on the price of gate hardware in the second half of the year. We expect the fluctuation range of the US dollar to RMB exchange rate in the second half of the year should be between 1:6.1-1:6.4. We believe that there is no possibility of breaking through 6 in the short term.
Therefore, it is foreseeable that in the second half of the year, especially towards the end of the year, the price of gate wheels and gate accessories will increase slightly. Of course, the increase will not reach the rate at the end of last year and the beginning of this year.
Therefore, our suggestion is that if there is a purchase demand within the year, placing an order as soon as possible is the best choice.
PS: The price we quoted to our customers recently is the lowest price we can achieve. Because we are well aware that in the context of the global pandemic, only mutual understanding and cooperation can achieve a win-win situation and overcome difficulties together.
