Why the Stainless Steel price change frequently? Do you raise the price deliberately? Sometimes the price goes up just before we place orders. In most cases our margin is slim, once the supplier offer higher price the whole purchasing activities are delayed, that means all the jobs are in vain. However the price fluctuation is not decided by dealers. The main reason we can conclude as below 3 factors:
First, the raw materials prices;
Second, the supply and demand;
Third, some large enterprises’indirectly control
First of all, the composition of stainless steel, that is, stainless steel raw materials:
Stainless steel is a kind of high alloy steel which can resist corrosion in air or chemical corrosive medium. His representative steel grades are 13 chromium steel 1Cr17 (430) and 18 chromium nickel 0Cr18Ni9. The main raw materials of stainless steel are iron, chromium, chromium, nickel and nickel. The price of these raw materials plays a decisive role in the price of stainless steel. The rise of raw material price will support the price of stainless steel, on the contrary, form pressure, or become a driving force. Therefore, to pay attention to the stainless steel market, we must pay attention to the global nickel price, especially the LME nickel price trend, as well as the global iron ore, molybdenum price trend and the latest developments, as well as the price trend of other non-ferrous metals. Through LME, Comex and domestic Shanghai Futures Exchange, investors can know the latest development of non-ferrous metals at the first time and predict the price trend of stainless steel. Of course, you can also get more information through the stainless steel trading center platform and its website.
Secondly, Inventory influence
The relationship between supply and demand has been constantly guiding the price, and inventory is a good reflection of the current market supply and demand. Oversupply, stainless steel prices fell. Inventory overstock, supply exceeds demand, prices rise, and inventory is very tight.
If the price of a certain series of stainless steel is too high, there will be substitutes for this series in the stainless steel market. Substitutes generally have many advantages, such as low price, cheap materials, and superior performance and so on. Therefore, the emergence of substitutes will also cause price fluctuations, especially in the futures market.
National economic policy, National Foreign Relations and major changes in national policies, such as if the country attaches great importance to a certain industry, or carries out anti-dumping against a certain country, joins the WTO and so on, these factors also have a huge impact on prices.
Finally, some monopolies or monopolies jointly control the price.
The indirect control of some large enterprises also has a partial impact on the price of stainless steel.
In short, in order to survive in this industry, every investor should polish his eyes, carefully analyze the factors in all aspects, and be observant and attentive. Before purchasing, consumers also need to compare their products, find the right time, take decisive actions, and find a suitable steel trader for their cooperation, because the price may soar the next day, and of course it may fall, so whether they can judge accurately depends on the comprehensive analysis of the above three factors.