Factors affecting the pricing of Steel



Steel industries around the world are affected by various factors that determine the manufacturing cost of their products. Some of these may be direct contributors while some others are indirect determining factors that affect the Final cost of the products. It is important to understand and alter these costs throughout the Manufacturing and Supply chain in order to ensure that the company is delivering the products at a competitive price.

Here are some of the major factors that affect the price of Steel products:

1    .   Raw-materials availability:
The availability of the raw-materials for the production of Steel plays an important role in the manufacturing price of the final products. The demand and supply of the raw-materials is always changing and therefore the availability of these raw-materials is always fluctuating. The prices depend on these supply-demand and also on the future availability of the raw-materials. Standardization of these Market price is difficult as Steel products are created in a variety of grades, sizes, and forms and most of these products use the same primary raw-materials.

2    .     Shipping Costs
Shipping costs are always fluctuating as there are a lot of factors that affect the transportations. The changing fuel prices, labor charges, weather conditions, transportation tolls and taxes affect the overall price of Shipping materials. The cost of shipping is also different for different locations and shipping companies. This is an unavoidable cost that needs to be factored in while determining the price of the final output.
3    
.     . Cost of Power Supply
Energy is consumed on a large scale in a Manufacturing company. The price of electricity is dependent on the fuel prices, changing taxes, etc while other form of energy used for the supply chain also depend on the Oil prices. Oil prices is the most fluctuating industry and most industries are dependent on it for the smooth functioning. The changes in the cost of the power and energy supplies hugely impact the price of the Steel products.

4    .     Market demands
The supply and demands of the Steel products play a significant role in the change in a price at the market level where increasing demands with short supply can see a huge price hike and a decrease in demand with a high supply can cause a markdown in the pricing. These changes are mostly seen at the later stages of the supply chain, as a response to the Market requirements.

At Agni Steels, we believe in keeping our costs regular and cater consistent quality of the product to our end users. We have achieved this by incorporating key infrastructure and initiatives, for instance, our in-house production of intermediate raw-materials, power supplied to the manufacturing plant via the Windmills built by Agni in the premises, etc. We believe in constantly attempting to deliver our consistent products at a consistent price to you.

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