Chengdu Derbo Steel Co.,Ltd

Why Are the Prices of the Stainless Steel Pipes Different?

The price of the stainless steel pipe & tube has always been a matter of concern to customers. Sometimes, customers ask why the prices of the stainless steel pipe with the same specification are different in different places. Now, we are going to tell you the reasons for the different prices of the stainless steel pipes with the same specification.

1. Differences in materials: For example, the 304 material includes 304 material used in the medium frequency furnace and 304 material used in the refining furnace. If a pipe factory mixes part of the 304 material used in the medium frequency furnace with that used in the refining furnace or offers the prices of the 304 material used in the medium frequency furnace for the customers but provides their customers with the 304 material used in the medium frequency furnace, there will be some discrepancies in the prices of stainless steel pipes.

2. Differences in administrative cost: The cost of different stainless steel pipes will vary from each other because of the different cost of administration, factory, workers and the rent of the factory.

3. Differences in inventory cost: Excess inventory of stainless steel pipes will cause the increasing of the cost and the low velocity ratio of the capital, which will finally lead to the little profits of companies. The serious imbalance between sales and inventory will also increase the companies' production costs. Many customers will ask why the stainless steel pipes' prices do not fall down the day when the prices of the steel drop. This is because the factories' inventory of steel pipe and steel decide the prices they offer. Thus, some of the plants will not cut prices of stainless steel pipes as soon as possible when the prices of steel drop. It is also related to the cost of factories and not the credit problem of the factories themselves. Sometimes, factories need to transfer the goods. However, prices of pipes with great thickness and the uncommonly used specifications are usually high, because the sales volume of these pipes is not as high as that of the conventional pipes and these pipes have already been stored for a long time, leading to the relatively high costs of stainless steel pipes.

4. Differences in fixing the prices: Different companies' standards of fixing the prices of stainless steel pipes may be different from each other.

5. Differences in production cost: Comprehensive factors including the cost of different factories, facilities, personnel, production management result in the discrepancies in the rates of finished products. If there is a high proportion of waste, the cost will certainly become high. Why are the prices of thin pipes, small pipes and pipes with special requirements usually high? That is because the yield of these pipes is small per unit and the cost of the labor consumed per unit is relatively high.

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