Since November 15, 2017, China has implemented the most stringent shutdown order, steel, coking, building materials, non-ferrous act all industries are limited production. Foundry industry in addition to the furnace, natural gas furnace which meets the discharge requirements can produce, but should be not continued in the yellow and above heavy pollution weather warning period. It causes a series of prices increase.
1, Raw materials soaring impacts on various industries
2018 under the common influence of the casting cost like iron and steel, chemical, foundry materials, coal, accessories ect roaring, transport costs higher and government limited production, in September pig iron price has created annual high record, some areas exceeded 3550 RMB/ton! A number of foundry enterprises issued price increase letter by 200 RMB/ton.
2, Freight rising affects all industries
During the heating season, many local governments regulate that key vehicle enterprises involved the transportation of bulk raw materials like steel, coking, nonferrous, thermal power, chemical act to implement “one factory, one policy” wrong peak transport, preferring select the good emission control level of the national standard four five vehicles to assume the transport task. During the heavy pollution weather, transport vehicles are not allowed to get in and out of the factory and port (except for transport vehicles to ensure safe production and operation). All freight charges were pushed up the price peak.
The impact of this price rising on small and medium-sized enterprises is very large. With higher costs, manufacturers have to survive and increase price is also helpless, please understand and cherish your suppliers! It’s the biggest support if they can provide you goods in time.
Post time: Feb-22-2019