Due to the influence of many factors, the production cost of forgings is also constantly changing. At present, in China, the production price of forgings continues to rise. This rise may be caused by many factors, such as raw material costs, labor costs, etc. The following are the factors that lead to a short-term rise in forging prices.

1. Fluctuation of raw material prices

Before producing each order, manufacturers need to book raw materials first. In recent years, due to the high market demand, material prices have continued to rise.

2. Rising labor costs

The workers in forging factories are mainly between 40-60 years old. As time goes by, they can't bear the heavy work. The children also start working. Therefore, the pressure of life is not so great. They choose to reduce working hours. Therefore, it is difficult to hire more workers to work in the forging factory due to the difficult working environment, especially in the hot summer. Now the cost of hiring them is getting higher and higher.

3. Increasing environmental protection costs

Today, the government has put forward more stringent environmental protection requirements for China's die forging companies. In order to meet this requirement and protect the environment, die forging factories must be equipped with qualified environmental protection equipment. This leads to rising forging prices and rising production costs.

4. Exchange rate fluctuations

Currently, the exchange rates between different currencies are constantly changing. The fluctuations are large. Therefore, the prices of die forgings are also constantly changing. We mainly trade in US dollars. Due to the depreciation of the RMB, the prices are being adjusted.

In addition to the above reasons, there are some other factors that will cause the price of die forgings to rise. But in comparison, for buyers in European and American countries, it is still cost-effective to import die forgings from China. If you have such questions about forgings, please contact us.