The fluctuation of steel prices being  narrowed throughout 2019 , the pace of changes in prices quickly , and both the price and the industry’s profit center was fell in 2019.

Chinese Lunnar Year coming soon ( 26-Jan,2020 ), there is about 10-20 days holiday for Chinese Manufacture Industry. Here we talk about the Alloy steel  price infulecing factors 2 weeks  before and after Spring Festival .

Alloy Steel

The Factor of  Alloy steel USD unit price goes up :

  • The average freight cost higher .

It is shipping season before Chinese Spring festival ,there is many vessel shchedule line will stop shipment or reduce their shipment line during Chinese Festival holiday .

As you know ,the price will go up in great shipment demand . According the newest offer from our shipment agent ,all the shipment cost by sea was go up 30% at least . Some shipment line ‘s freight twice as much as usual . (such as the Freight from Shanghai to Dubai ： 40GP ：800 USD on Oct.， now it is 1700 USD )

 

If the the Alloy steel offer base on CIF trade terms ,the offer will be higher even EXW price keep same as before .

 

  • Machined process fee /Heat treatment cost /Domestic cost higher than usual

The new year coming soon ,and all the machined factory or heat treatment shop being crazy busy . And it is easy suffer Labor shortage before the Spring holiday . There is too many drivers for heavy trucks  also will have a holiday and back to hometown in advance ,it will lead to difficult to found a driver to help us shipment the Alloy steel from warehouse to Loading port .

Many production workers will leave their job ,and  look for a new job after Spring Holiday .It will lead to the labor cost higher than before ,then leadto the processing fee higher a little than usual .

Those reason have some influence of alloy steel order which need to processing again , such as do the Quenching and Tempering process ,or milling /Turning  process .

  • The USD & RMB currency rate go down compared with Nov.2019 .
–Our currency exchange rate  is 7.06 on Nov.,2019
–Now (Jan, 2019 ) our currency rate is 6.94 .
–The currency exchange rate go down lead to the USD unit price higher than before .
Chinese Currency rate go down in recently 2 years during Spring Holiday .
Well, it is Currency is the basic factor which affects the USD price of all products .
As the stockist of Alloy steel ,we need to check the newest currency each day to update our Alloy steel offer in the new year .

Ms Elwa Lee

Mobile/WhatsApp: 0086-15899675236

Tel: 0086-769-23190193

Fax: 0086-769-88705839

Email: Elwa@otaisteel.com