Just in time for the start of the large-scale environmental protection campaign in China, the prices for the material P250GH are extremely high.
Prices have risen by around 8% this week after only modest price increases in October, making them the highest price / kg since the beginning of price increases at the end of 2016.
As we reported here a few weeks ago, both the Chinese central government and the provincial governments have ordered massive measures to reduce the environmental impact on industry. In the period from 15/11/2017 to 15/03/2018, a large number of steelworks – the extreme muddlers – are no longer allowed to produce at all. Others whose emissions are lower but above the permissible limits must reduce production by 50% during this period.
In recent weeks, some “our” manufacturers from Shandong Province have reported gas supply problems necessary for the operation of the forge furnace, which has been converted to gas for about two years.
Our Chinese partners are also increasingly complaining about difficulties in obtaining high-quality material. Not only that the delivery times of the steelworks have lengthened considerably, it is actually already about the availability.
Logically, the current difficulties in procurement are as little as the extreme and rather spontaneous price increases are not.
Because the environmental protection measures during the heating season start today!
Basically, both the price increases and the reduced availability will only be effective in a few weeks. In fact, the entire operation is bumpy in recent weeks. Again and again, some manufacturers spontaneously received a temporary ban on production or orders to reduce production.
In addition, the steelworks, which are not affected by the first wave of closure, are simply smart and have mastered the laws of the Western market in a virtuoso way: They also increase the prices of the input material for one reason – because they can.
At the moment, we can only advise our customers to cover their requirements in good time, in particular in good time and also taking into account longer delivery times, in order to prevent procurement bottlenecks from occurring for you.
We keep you up to date and inform you promptly about the development.
Finally, we are interested in whether and how you have adapted your procurement strategies to the changed situation.
We are very happy about feedback and your questions.
Binding and warm greetings from Bremen