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Part 2 Cold rolled steel. Section 3 - Factors that influence the price
In global market, many clients receive the offers with different prices, and sometimes the gap is big, it’s commonly caused by the following reasons.
1.Negative thickness tolerance. Honest suppliers quote on the base of actual net weight with reasonable thickness tolerance (usually +/-0.02mm), but some quote on the base of either theoretical weight or with big negative tolerance (in fact they are the same thing). This situation happens more when the client asks for sheet form delivery. For example, one asks for sheet with 2mm thickness, but the supplier quote the price of 1.8mm thickness. The price difference can be 10%, and it’s quite a lot.
2.Export without paying the tax. It's illegal. This way can evade 7%-8% tax from the cost which is also a big deal. Although the price is very attractive, risk is also big, because whenever the situation was found by Chinese customs, your deposit, even full payment will disappear because no one will spend millions to get the materials back from them after receiving all of the payment by taking the risk of his business being shut down and himself might be punished.
3.Supply low standard instead of high standard. For example the customer required deep drawing quality or high tensile quality, disloyal suppliers will supplier common grade materials as the replacements. This condition happens a lot.
So, choosing a reliable supplier is quite important, it will save much of your time and cost. MESCO is the steel material expert by your side. Hope the above-mentioned information is favourable for you. If you have any questions or want to know more, please contact us.
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