14 Nov 2017

Currently, the price of steel tends to rise steadily. This is one of the main problems for the manufacturer. Because the production cost is higher according to The higher steel prices will have an impact on the industrial costs. Whether in the construction industry Automotive industry and various electrical appliance industries If operators do not understand the reasons for steel prices. Can cause cost problems The main reasons for the price of base metals to rise in this period are as follows.

The demand for consumption is much higher in developing countries with high economic expansion.
Due to the development and economic expansion A lot of iron is needed. For example Construction industry Automobile industry, electric appliance and electronic industry As a result, there is a higher demand in the market. As a result, steel prices go up as well.

The problem of shortage of energy in production.
In the event of energy shortages, production fuels such as coal are the main fuel for smelting and power generation. Inevitably affect the price of steel Due to a disaster in some producing countries As a result, many smelters have to temporarily stop operating. This causes the amount of metal entering the market to decrease and thus the price of steel is higher.

Higher oil and raw material prices
If oil has a higher price Inevitably results in higher production and transportation costs. Not only the price of oil But also other raw materials that are involved in the production of steel such as coal, coke coal for melting steel, stainless steel and aluminum, which, if these things become more expensive, will result in higher steel prices as well.

Chinese authorities' measures to control export volumes
As China is both the top producer and consumer of most metals in the world. This makes China have a huge influence and play a role in steel prices. Both in Asia and around the world

Other issues within the manufacturer's country
Various problems within the producer country are one of the factors that have directly affected steel prices. Whether it is the weather During the rainy season or various disasters Or political problems Such as the protests of the workers of the manufacturing country. These problems have had an impact on the construction. As a result, many projects have to be slowed or halt during this period. Therefore causing the price of metal to change

Hoarding and manufacturer monopoly
Occasionally, the hoard of goods from both the metal producer. And consumers who buy metal to be used as a means of production in the future Because there may be a prediction of product for production and sales. Market trading is therefore declining. Resulting in higher steel prices Or there is a manufacturer's product monopoly Giving manufacturers a commercial advantage And can set a high price of steel


Of course, the higher steel prices Inevitably affects the cost of production in many businesses Causing operators to face cost problems However, it may not immediately affect your business. But it also depends on many other factors. Which, if we can understand the reasons and the origins of steel prices Either directly or indirectly We will be able to fix and adapt to reduce the impact of the problem.


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