Fluctuation of raw material cost
The main raw material of carbon steel pipe is strip steel or steel plate, and the prices of these raw materials are closely related to the market dynamics of basic raw materials such as iron ore and coke. Changes in supply and demand in the international iron ore market, geopolitics and other factors may lead to large fluctuations in iron ore prices. Once the price of iron ore rises, the production cost of strip steel and steel plate will inevitably increase, which will eventually be passed on to the price of carbon steel pipe. For example, due to the adjustment of output by international iron ore suppliers, the price of iron ore soared, and the cost of raw materials for producing carbon steel pipes in our company rose, and the price of finished steel pipes also increased accordingly.
Difference between production technology and equipment
The difference of production technology and equipment has a significant impact on the price of carbon steel pipe. High-frequency straight seam welding and submerged arc welding are different in production efficiency and product quality. Our company has 13 new automatic steel pipe production lines, including three straight seam double-sided submerged arc welded steel pipe production lines. These advanced equipments can realize efficient and accurate production. Compared with the old equipment, our production efficiency is improved and the product quality is more stable. Although the initial equipment investment is large, in the long run, the unit production cost is reduced, which can provide customers with more cost-effective products. However, some manufacturers who use backward technology and equipment have low production efficiency, high defective rate, unable to reduce costs and naturally lack competitiveness in product prices.
Changes of market supply and demand relationship
Market supply and demand is a direct factor affecting the price of carbon steel pipe. At the peak of infrastructure construction, projects such as large-scale tap water projects and bridge construction are concentrated, and the demand for carbon steel pipes is greatly increased. At this time, the market is in short supply and prices often rise. On the contrary, in the downturn of the real estate market, the demand for carbon steel pipes for construction has dropped sharply. If the manufacturers have overcapacity and the supply exceeds demand, the price will fall under pressure. Take Cangzhou as an example. During the regulation of the real estate market, the price of local carbon steel pipes for construction dropped.
Product specifications are different from quality requirements
Carbon steel pipes with special specifications and high quality requirements are more expensive. Large-diameter and thick-walled steel pipes are difficult to produce and require special production equipment and technology. Carbon steel pipes used for high-pressure oil and gas transportation require extremely high strength and corrosion resistance. Not only high-quality steel should be selected, but also strict quality inspection and treatment should be carried out in the production process. Our company has customized production capacity, and can provide corresponding products according to customers’ different requirements for specifications and quality, while ensuring quality and reasonable pricing.
Changes in transportation and logistics costs
The influence of transportation distance and transportation mode on the price of carbon steel pipe can not be ignored. The weight of steel pipes is large, and the transportation cost accounts for a relatively high proportion. From our production base in Hope New District, Mengcun Hui Autonomous County, Cangzhou City, Hebei Province, to the customer’s location, the longer the transportation distance, the higher the transportation cost. The fluctuation of oil price and the change of transportation policy in the logistics market will also indirectly affect the transportation cost. Our company has established long-term cooperative relations with many professional logistics enterprises. By optimizing the logistics scheme, we can effectively reduce transportation costs and provide customers with more favorable prices.
In a word, the price of carbon steel pipe is affected by many factors. Hebei Huayang Steel Pipe Co., Ltd. has always been committed to providing customers with high quality and low price products in a complex market environment. We rely on advanced production technology, reasonable cost control and perfect logistics distribution to ensure that customers can purchase satisfactory carbon steel pipes at the most cost-effective price. If you have purchasing needs, please feel free to contact us and we will serve you wholeheartedly.