The price increase of a product has a great relationship with its market demand and supply.
According to the China Iron and Steel Industry Research Institute, there are three reasons for the rise in China's steel prices:
The first is the global supply of resources, which has promoted the increase in raw material prices.
The second is that the Chinese government has proposed a policy to reduce production capacity, and the supply of steel will be reduced to a certain extent.
The third is that the demand for steel in various industries has changed greatly. Therefore, when the supply is reduced but the demand remains unchanged,supply exceeds demand, which will lead to price increases.
The increase in steel prices has a great impact on factories producing mining machinery. The increase in the price of production materials means an increase in production costs, and the price of the product will rise for a while. This will make the factory's products lose their price advantage, which is not conducive to the export of products.The future trend of steel prices is a long-term concern.
Post time: May-19-2021