1. Prices of key commodities and industrial components increased between January and April. For example, the price of iron ore was up 58.8 percent compared with the same period last year, the price of copper rose 29.8 percent, and that of integrated circuits increased 18.9 percent, according to the General Administration of Customs data.
2. In addition, the cost of some shipping lanes saw a threefold to sixfold increase. For instance, the shipping cost of a container from Ningbo to New York skyrocketed, from $2,500 to almost $12,000, according to industry statistics.
3. The fluctuating foreign exchange rate also makes our contracts riskier, some emterprises have to resort to some financial derivatives to hedge risks.
According to Guan Tao, global chief economist of BOC International (China) Co Ltd, the two-way volatility of the exchange rate will continue this year, amid changing dynamics and a mix of factors.
Though China's foreign trade surged 28.5 percent year-on-year in the first four months of 2021, manufacturers are a bit conservative in their prospects for the rest of the year, and many of them could run out of raw materials soon.
Some manufacturers have gradually increased the sale price of their products, and more are strengthening their efforts to explore the domestic market.
We look forward to the stability of the entire market as soon as possible. At the same time, we are willing to unite with more partners to cope with the pressure of the market.
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