The raw materials of stainless steel flanges have led to a price rise cycle. For some time, the price of raw materials of stainless steel flanges has not been analyzed. This is very important for our manufacturers and purchasers of stainless steel flanges. Some time ago, the prices of raw materials for stainless steel flanges and carbon steel flanges have decreased to varying degrees. We have also reminded all customers that the opportunity should not be lost. They should timely advance their stainless steel flange procurement plan, because prices will rise at any time. Obviously, some customers have listened to our suggestions. During this period, 520 tons of stainless steel flanges were purchased in advance, which fully explains that, Our stainless steel flange purchasers are extremely sensitive to price and attach great importance to price fluctuations. Congratulations to these flange purchasers today, because our stainless steel flanges may really be going up in price. It has been learned recently that the price of raw materials for stainless steel flanges has risen. The main reason is that the cost of raw materials for producing stainless steel flanges has risen, that is, the rise in coal is the main factor. In fact, the rise in coal has occurred since last year, but it has declined due to national macro-control. However, the development of the market has led to a sharp rise in coal. This directly leads to the rising cost of steelmaking, and the raw materials of our stainless steel flanges will rise. Naturally, the high cost will force our products to rise.
Since the beginning of this year, due to the conflict between Russia and Ukraine and other factors, China's external energy pressure has continued to increase. The conflict between Russia and Ukraine not only accelerated the substitution of coal for natural gas in a short period of time, but also forced EU countries to purchase coal from other countries outside Russia. As Russia's coal exports account for about 15% of the world's total, the coal ban against Russia has exacerbated the global shortage of coal supply, and the coal price in the overseas market has increased several times over the end of last year. This may be the root cause of the rise in raw materials of stainless steel flanges.
