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Bargaining power of stainless steel pipe suppliers

Bargaining power of stainless steel pipe suppliers

Time:2022-03-17 Source:China Wuxi JiaNuo Special Steel Co.

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Suppliers and producers as buyers can help each other with reasonable prices, better product quality, develop new services, timely delivery and reduce inventory costs, which can benefit both sides at the same time and improve the long-term profitability of all parties concerned.

Stainless steel pipe factory’s dual identity as a trader and producer determines its suppliers include raw materials and product suppliers.

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1. Raw material suppliers

At present, our stainless steel pipe raw materials mainly from Shanghai Baosteel, Tianjin seamless steel pipe factory and Yingkou steel plate factory, they are our long-term suppliers, these stainless steel pipe factory material prices, although high, but good quality, stainless steel pipe prices relative to duplex steel is still very stable, the annual price per ton up and down less than 10%, while duplex steel is different, almost every five days the price will change once. At present, our main raw material is stainless steel round, and the price of steel is very transparent, the market price is announced once a day, so we and suppliers can basically agree on a reasonable price, basically will not affect our competitiveness.

2. Product suppliers

Stainless steel tube factory has just started, at present it can not form a scale, most stainless steel tube products are still purchased from other domestic factories, the main procurement area is concentrated in the manufacturers around Yingkou. They have many years of trade with us, so the price to us is the lowest relative to other domestic buyers, and the small size of these factories, our procurement quantity is usually very large, so their dependence on us is very strong, and will not require price increases in the short term.