Since the epidemic, the price of iron ore has gradually increased. Especially since this year, the price of iron ore has accelerated, leading to a rapid increase in the price of downstream steel. Recently, the weekly price increase of various steel raw materials has reached a maximum of more than 15%. The price increase of round steel which is used in gate wheels and accessories rose nearly 100% compared with the same period last year.
On the other hand, China containerized freight index composite (CCFI) has nearly tripled compared to the same period in 2020. Coupled with the pick-up of demand in the European and American markets, China’s total export volume has gradually increased, and freight storage spaces are very tight, and even one container is difficult to find. In the past two months, our customers in North America and South America have experienced delays in shipping schedules many times, and the longest shipping schedule has been delayed by more than one month.
In fact, this year, all industries in China have ushered in an unprecedented price increase. The prices of upstream raw materials to downstream industrial products have risen to varying degrees. Apart from the increase in exchange rate and raw material prices, the main reasons for all this are international politics and finance. Due to the epidemic, many countries are constantly issuing currency in an attempt to alleviate the economic crisis brought about by the epidemic. The United States has even used its currency hegemony to pass on the crisis to the world by issuing a large number of dollars. This has caused global commodity prices to soar, and China’s export product prices have to follow suit. Judging from the current epidemic situation and the international political and economic situation, price increases will continue to be a trend in the next 1-2 years. It is only a matter of more or less. In my opinion, the current price is likely to be the lowest price in the next 1-2 years. Moreover, as long as the price rises, it is difficult to call back. Because it is impossible to take back the US dollars issued by USA and the currency issued by other countries.
Therefore, my advice to all customers is that if there is a purchase demand in the near future, it is best for you to place an order as soon as possible. Especially in the autumn and winter of the second half of the year, considering that the epidemic may still spread again, the prices of raw materials and freight are likely to usher in a new wave of increases. Therefore, to be more precise, my suggestion is to place an order as soon as possible if you have a purchase plan within this year.
It is a difficult time now.But opportunities and risks often coexist.Those who can persist will surely get rich rewards in the future.
I am willing to work with you to tide over the difficulties.
Finally, I would like to end as Shelley’s poem:If winter comes,can spring be far behind?
PS:
In addition, what I want to say is that Golden Wheel’s sliding gate wheels,swing door wheels, nylon guide rollers, hinges,hanging rollers and other products will still use high-quality raw materials produced by China’s first-line steel companies to ensure the quality of the products. No matter whether the price of steel increases or not, high-quality products are what we have always been committed to.
