China Manufacturing Raw Materials Purchase Price Index is at a current level of 67.10, up from 53.80 one year ago. This is a change of 24.72% from one year ago.
In 2020, worldwide demand for oil fell rapidly as governments closed businesses and restricted travel due to the COVID-19 pandemic. The average price of WTI in 2021 will be between $50/bbl and $55/bbl. Oil prices rallied in the fourth quarter, and are now close to where they were a year ago. That anticipates a strong recovery.
Steel prices are expected to increase throughout the beginning of 2021 as supply remains tight and demand rebounds from pandemic levels. Many industries have taken a hit throughout 2020, and the construction industry is no different. As a result, many producers cut world steel supply to reflect these conditions.
Increased demand, static capacity, and industrial accidents have all come together to cause longer lead-times, reduced availability, and upward price pressure for key raw materials.
The cost of production has shot up for most manufacturers because of higher input costs, particularly raw materials such as steel. The price hikes are also partly a result of higher fixed costs, lower capacity utilization and overheads such as expenses related to COVID-19 safety protocols.
If you have any pending purchase plans in near future, kindly advice proceed as fast as you can in case the price will much higher than before.