Judging from the latest market purchase price, the steel purchase price in the United States is indeed much higher than the global market by nearly 70%. The reason for this phenomenon is mainly to cope with the fact that the current steel inventory in the United States has been completely digested. With the gradual relief of the COVID-19 epidemic, most countries have begun to resume their work. Under such circumstances, the requirements for raw materials are relatively high. However, before the United States, as the most serious country in COVID-19, its basic industry was basically at a standstill, so there was a shortage of raw materials after the resumption of work. So today, let's discuss the impact of such rising steel prices on other industries.

First, the impact on the processing and manufacturing industry.

We all know that America has been deindustrializing. They have set up their own factories all over the world, but not in their own countries. But in recent years, they realize that this is not good for the country, because it will lead to a large number of layoffs, so they keep moving foreign factories back to China. But this may lead to a problem, that is, their processing and manufacturing also need a large number of high-tech talents. However, the domestic labor costs in the United States are high, so their product prices do not need to be too competitive. Under such circumstances, if the price of raw materials rises sharply, it will undoubtedly be a disaster for these processing and manufacturing industries.

Second, the impact on the automobile manufacturing industry.

The arrival of American brand cars this year can be said to be very bad. On the one hand, because of the shortage of automobile chips, many automobile manufacturers have to suspend their production plants and are now in a state of shortage of raw materials. Ford Motor Company said that due to soaring steel prices and shortage of raw materials, they may close more production lines to ensure their own costs. But obviously, if they go bankrupt, their market share will be replaced by other brands of cars. Therefore, solving the soaring steel price has now become an important issue.

Third, how to treat this price increase?

This price increase will not only shake the competitiveness of American manufacturing industry in the international market. You know, now is the best time to restore the market. If we can seize the market at this time, it will not only bring huge cash flow, but also improve our popularity. At this time, the United States is in short supply of raw materials. As a powerful basic manufacturing country, such a thing really shouldn't happen.