Raw Steel Material Price Analysis

The steel silo industry is price sensitive on the raw material, raw steel material price change will cause the steel silo and auxiliary equipment price change. Here we make a conclusion on the raw steel material price change and give a price expectation in 2017 for your reference. Graph 1: Steel Price Trend during 2011-2016 (unit: RMB/ton) Summarize: 1. Pirce dipped to a low point in 2015, even less than RMB2000/ton 2. Price sharply rose at the start of 2016 and rose fluctuations in the whole year. At the end of 2016, the price is RMB3900/ ton, the price rose around 100%. Price expectation in 2017: According to the 2016 price fluctuations range, estimated 2017 raw steel material price range at RMB2800-4000/ton, the average price will higher than RMB3200/ton. Thus the steel silo price in 2017 will be in line with the price at the end of 2016. And now it is a good opportunity to invest in the silo before the next round of price sharply rises.

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