For our factories of Investment Casting Parts, Forging Metal Parts, Die Casting parts and Precision Machining Parts, the price of raw materials directly affects our processing costs and order volume. Steel raw materials have been rising since the second half of last year, and it has continued to the present, especially the sharp rise in early May. The average price increased by 800-1000 RMB/ton, which was unprepared. It can be said that the average price of per ton has increased by about 2500 RMB / ton since the second half of last year.

Due to the sharp increase in raw materials in early May, the order volume has dropped sharply, leading to higher and higher costs for enterprises in our processing industry. For castings that rely particularly on material costs (such as Stainless Steel Castings, aluminum castings, and Brass Castings ) and Forging Parts (such as Stainless Steel Forging Parts, Aluminum Forging Parts, Brass Forging Parts) and other processing industries, the profit margin is getting smaller and smaller. At present, as steel prices continue to rise, although many market regulatory agencies have begun to take action, aiming at steel companies to actively fulfill their social responsibilities, effectively strengthen price management, set prices reasonably, and cooperate with the government to do a good job of stabilizing steel prices in the steel market. Optimize the business environment and ensure high-quality economic and social development to play a positive role. Although various departments have adopted a series of measures, from the perspective of recent steel prices, although there has been a slight decrease, it is still impossible for steel prices to fall sharply in the short term. However, it is not yet known what the future development should be.

We hope that the fluctuation of raw materials will be within a reasonable range and follow the laws of the market. If irrational rapid growth or rapid decline is very unfavorable to our processing plants, it is more likely to cause major fluctuations in the entire industry. Finally, we hope that the steel raw materials will return to a reasonable state as soon as possible, so that our processing plants can return to normal work.