According to the interview of CCTV:
Steel price doesn’t slack during the slack season since November. The steel price has reached to RMB5230 per ton, which is the highest price among the last 6.5 years. Price index of steel material has increased more than 50%! People in steel industry said booking order quantity for steel materials keep big and not decrease, steel materials even get short of supply.
This is very common situation like having dinner, according to our understanding, currently, although e rickshaw factories have some materials in stock, and e rickshaws have been finished, according to the government environmental protection situation and raw material price situation the risk of price increasing of e rickshaw is very big!
Steel price increasing is truth and will maintain under the strength of government environmental protection. A manufacturer has to consider the rate between production cost and profit. Final product price will increase, but we can’t decide exact when.
The idea of author, although there’s some steel material in stock from factory the pressure of government environmental protection and upstream product price increasing, it is necessary for factory purchaser to prepare for this.
With the conscious of storage the manufacturer can balance the price for distributor in a controllable range. It’s better for distributor has a conscious of storage too.