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What Causes Prices of Drop Forgings Increasing?

Drop forging is a type of forging. It is used when a large quantity of certain components with sound and good quality forgings are to be produced. The die used in drop forging consists of two halves. The lower half part of die is fastened to the anvil while the upper half part is fixed to the movable ram. The heated bar or billet is kept in the lower die while the ram delivers four to five strokes (blows) on the metal. When these two die halves come together in closed alignment, the metal spreads and completely fills the die cavity.
The typical products obtained in drop forging are connecting rod, crank, crank shaft, crane hook, etc. Drop forging process is widely used in automotive industries, airplane parts manufacturing, rail road equipment manufacturing, engine manufacturing industries, agricultural equipment manufacturing industries, etc.

Factors that Cause Prices of Drop Forging Increasing

Production costs for drop forgings are changable due to varify on many factors. Currently in China, the prices for producing drop forgings are keeping increasing. Such inceasing can be caused by several factors, such as raw material costs, labour costs, etc. Below are the factors that cause the prices of drop forgings increasing briefly. 

*Fluctuation of Raw Material Price

Before the production of each order, manufacturers need to book raw material first. In recent years, the material prices are getting higher due to the large volume demands from the market.

*Increasing on Labour Costs

Workers in drop forging factory mainly aged from 40 - 60. As time goes on, they can't afford to heavy and duty working. The children getting to start working. So, life pressure is not so big. They are choosing to reduce the working time. So, due to the hard working enviroment, especially in hot summer, it's difficult to employ more workers to work in forging factory. The costs to employ them are getting higher now.

*Increasing Environmental Protection Cost

Nowadays, government has a more strict environmental protection requirement on drop forging companies in China. To achieve this requirement and protect the environment, drop forging factories have to be equipped with qualified environmental protection equipments. This brings the increasing of  drop forging prices and caused the higher costs for production.

*Fluctuation of Exchange Rates

These days, the exchange rates between different currencies are keeping changing. The fluctuation is big. So, the prices of drop forgings are also keep changing. We mainly trade in US dollars. Due to the devalue of RMB, the prices are adjusting now.

Besides the above reasons, there're some other factors that will cause prices increasing on drop forgings. But by comparison, it is still cost effective for buyers from Eourpean and American countries to import drop forgings from China. CFS Drop Forging Company supplys qualified closed die forgings with good prices. If you have such inquiries on closed die drop forgings, please contact us.

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