When is the best time to buy gate hardware in
2022?
The answer is now.
It’s February now, right after the Chinese New Year holiday. Factories have shut down for several weeks, and now they reopen, it will take at least a few more weeks to get back up to full production capacity. As many seasoned importers will tell you, it’s critical to start planning for the holiday far in advance. If you place an order at this time, your purchase order will be completed quickly. And this is very important. Because the international shipping market price is still high. According to the latest data released by the Shanghai Shipping Exchange, on January 21, the China Export Containerized Freight Index (CCFI) reached a record high of 3555.24 points.To make matters worse,there is no space to book. Both the Baltic Sea Freight Index and the China Export Container Freight Index are at the highest level in history, and according to the current situation, there is no sign of a short-term decline. Even if you book your class now, many routes will still have a ship a month later. In order not to affect your product sales, we strongly recommend that you place your order now.
On the other hand, The US Federal Reserve is likely to hike interest rates in March in March, and this expectation has already led to a fall in the exchange rate of USD/CNY. The offshore yuan hovered near 4-year highs past 6.33 per dollar.The devaluation of the RMB is a long-term trend, which will inevitably lead to an increase in the price of export commodities and increase your procurement costs. Especially for gate hardware export such as sliding gate wheels, gate rollers,hinges,etc.Our quotations are greatly affected by the exchange rate.
In terms of raw material prices, after the recent surge, iron ore prices are still just about half of what they were earlier in May 2021. On current reckoning, the upside price risk to this key raw material is rather high. The price of coking coal and coke has continued to strengthen, and the cost of steel has risen, which in turn supports the price of steel to stop falling and strengthen. In addition, the operating rate of the construction site is recovering rapidly, and the operating rate is better than the same period last year, the market demand is also growing steadily, and the purchase of steel is gradually increasing. It is expected that the prices of the main raw materials of gate hardware such as steel will still rise slightly.
Combining various factors, we believe that the cost of our products such as sliding gate wheels,guide rollers may increase slightly in the near future. In addition to changes in exchange rates, freight rates and sporadic outbreaks of epidemics in China, from the perspective of buyers, now is the most suitable time to purchase in 2022.
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.
