The Covid-19 pandemic has had a strong impact on the economies of countries, especially Western countries, including the US. After the pandemic, most of the steel consuming industries are active again, leading to an increase in demand for steel, so price of most steel-related products have increased. However, with many years of experience in the manufacturing and construction industry of racks, A Dong understands and offers optimal solutions when steel prices increase, but the prices of A Dong racks brought to our customers have not increased.

How does rising steel prices affect the rack industry?

The sudden increase in iron and steel prices will have a great effect on the warehouse operation in general and on the rack industry in particular, that is, the rising cost of steel is affecting the types of shelves using iron and steel materials. At the same time, the daily increase in steel price makes the psychology of iron and steel vendor unwilling to supply, or businesses hoarding speculation, causing decrease in the supply of steel, while the demand for steel is increasing, hence, steel price goes up even more.

Many manufacturers are in danger of bankruptcy due to the sudden increase in steel prices in the first quarter of 2021, especially in April. According to the report on the steel market situation in March of the Vietnam Steel Association, iron and steel prices may go up until the end of the third quarter of this year due to the scarcity of raw materials for investment in China and India. Therefore, this development causes steel prices in Vietnam to grow and had no sign of cooling down.

Soaring iron and steel prices strongly affect rack manufacturers since a sharp increase in input costs will reduce profits or even make losses. Thus, businesses only focus on implementing contracts, do not dare to sign new contracts.

A Dong commits that the rack price will be unchanged

During the past, iron and steel prices have just had a galloping increase, previous forecasts said that iron and steel prices would only keep up to the end of the second quarter of 2021. However, everything is changing, steel price is forecasted to go up by the end of the third quarter of 2021.

Understanding this difficult situation, with prestige and trust from customers who have cooperated for many years as such big brands: Dien May Xanh, Bach Hoa Xanh, The Gioi Di Dong, An Khang Pharmacy…. A Dong is committed not to increase the rack price so that partners can quickly go into operation as planned.

With high professional competence, modern machinery, a team of well-trained workers with many years of experience in the production and construction of racks. A Dong certainly not only does not increase the rack price, but also responds properly and sufficient in the time required by the partners.

All materials are used exactly as committed in the contract, carefully selected, so we will ensure the high durability and safety of using these materials.

With a factory larger than 20.000 m2 along with experienced and skilled resources, we will meet all the requirements of our customers with the best quality and the longest service life.

Once again, in the face of the current sudden increase in iron and steel prices, A Dong make commitment to keep the price unchanged. Should you have any queries, please contact to hotline 091.999.7403 for advice and specific quotation.