Great changes in Raw material market price
Since the Spring of 2021, the metal raw material cost price increased rather fast, for example, the Steel from RMB4000 in 2020 to RMB6000 or more in 2021. Increased by 50%, and cast iron by 30% or more, SS. by 20% or more, etc.
The main reasons are belows:
1, The government's restriction policies and environmental protection policies caused many raw material factories closed or reduced their output.
2, The domestic markets have the huge demands, such as Housing industry, Railway and high-speed rail industry, Shipbuilding industry, etc.
3, The international markets also have the huge demands on many mechanical parts, machines, equipments, etc.
On the one hand, above reasons caused the output reduced, on the other hand, the demands still keep very large level. So, the Price increases are inevitable.
We will continue to focus on the raw material market movement and then adjust our product prices accordingly.