It is known that the price of a product is not always fixed. Instead, they are capricious and complicated and depended on serveral factors. As a professional Stainless Steel Hollow Sphere supplier, today, I would like to talk about factors that influence the price of stainless steel sphere.
- Cost of Raw Materials
Haixu’s stainless steel sphere are made of stainless steel, therefore, the rising cost of stainless steel will cause the increasing price of the products. Also, there is a strong correlation between the prices of stainless steel products and the prices of raw materials (mainly nickel and chromium), and product prices fluctuate due to changes in raw material prices. Nickel is mainly used for the production of stainless steel, and the consumption is mainly driven by the production of stainless steel. In recent years, the substantial increase in stainless steel production has driven and increased nickel consumption.
2. Supply and Demand
Supply and Demand are always the one of main factors that determines products’ price. The relationship between supply and demand has been constantly guiding prices, and inventory reflects the current market supply and demand. If supply exceeds demand, stainless steel prices will fall, and the inventory backlog will be large. However, in short supply, prices rise, and inventory becomes very small. If the price of a series of stainless steel is too high, then there will be a substitute for this series in the stainless steel market, such as grade 201 stainless steel sphere which was designed to replace 304 stainless steel ball if the cost of raw material is too high. Alternatives generally have many advantages, such as low prices, cheap materials, and superior performance. Therefore, the emergence of substitutes will also cause price fluctuations.
3. Technological innovation
There are three impacts of technological innovation on the international stainless steel market.
- First, technological progress will improve the function and performance of the product to a certain extent, broaden the application field of stainless steel, stimulate the market demand for stainless steel products, and increase market prices.
- The second one is that the impact of technological innovation on the production process can improve labor productivity and improve the production structure of stainless steel, reduce the global supply price of stainless steel.
- Third, technological progress may appear new alternative materials, thus reducing the demand for stainless steel which will turn out to reduce its market price. However, at presents, no new materials that are expected to replace stainless steel have been invented. Therefore, the impact of technological innovation on the stainless steel market is currently difficult to assess.
4. Economic policy
Changes in national macroeconomic policies, monetary policies, foreign exchange policies, and import and export policies, such as the introduction of national policies to promote consumption upgrades will stimulate the demand for stainless steel terminal products, or some countries impose trade barriers on some stainless steel products. It will affact the price of stainless steel to some extent. Therefore, it will also affact Stainless Steel Spheres’ price.
Haixu’s Stainless Steel Decorative Spheres are made of stainless steel. Therefore, the growing cost of raw materials will lead to the increasing price of the products. Market price is not always the same. Haixu, as a professioncal and reliable stainless steel supplier aims to provide our clients with quality products with competitive price and wonderful service.
You may want to know more about stainless steel: How to Recognize Stainless Steel