Blog Preface

We who work in oil & gas aspect have just passed a cold winter which continued about 2 years from 2015 to 2016. International crude oil price is around 50 USD/bbl now, which was around 25 USD/bbl in 2016.

As a china supplier, we survived in the winter and will struggle forward in future. In 2016, many friends ask us to investment to other industry area. But after serious consideration, we choose to hold our position. We have many kind and gentle customers in the whole world, and friendship is hard-earned. If they need us, we will try our best to support them at any time. Though their project is less during that time, and some are holding for sometime, but we believe that they will start more and more project in future.

But for we china supplier, situation is not very optimistic. Some of our product cost increased 25% than last year and delivery time is also raised. There are two main reasons. One is china steel cost reach highest point in 2017. We have to take cash to wait for raw material. The other is that cost of heat treatment and surface treatment raised crazy. Our government wants to implement more rigorous environmental protection policy. So some disqualified surface treatment facility is closed. We also need take cash to wait in sequence. So our product price is much higher than 2016, which affect some projects. For several one year contracts, we also lose lots of money. We hope that raw material cost and surface treatment cost will keep in a stable line according to market regulation.

We will try our best to show our good aspect in our next posts.