The price of stainless steel has presented a tendency of increase since May 2017 and is still rising now.
What causes the rise in price?
State regulation of prices
Steel industry is requested to control the total quantity of stainless steel, in the meanwhile, the government requested structural readjustment. It means the steel output is on the decrease. As demands exceed supplies, the result must turn to prices inflation. Whereas, our sanitary diaphragm valves, sanitary ball valves, sanitary flow diversion valves, shutoff valves and sanitary pipe fititngs are all made of stainless steel. Prices increased as a result.
It is also worth paying attention to environmental protection. Recently, high-pollution industries has became the key inspection target. So,a large number of defective factories were requested to stop manufacturing and improve their environmental protection equipment. Therefore, it may cause higher cost for production cost. And this will lead to fewer and fewer materials available in the present market.
The Nickel consumption in the stainless steel industry takes up 70% in the aggregate consumption of Nickel. Ferro chrome consumption takes up 80% in its total consumption. Where as, both of their raw materials mainly depend on import. So, any fluctuations of the overseas market may have impact on their prices in the Chinese market. As early as December 2016, the price of Nickel increased substantially. Nowadays, the price of Nickel has risen 3% and hit a historical high.
As a supplier of stainless steel sanitary valves and fittings, all of these have a great influence upon us. We may take some adjustment in the prices .
Thank you for your support and cooperation.