Gem-Year Industrial obtains a contact of 195 million Yuan
Author: ChinaFastener.com
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Date:
2008-9-9
Source: Chinafastener.com
Gem-Year announces that the company signed a contact of 194.96 million Yuan with the Railway Ministry about YWGZ-2 package of materials procurement and supply on March 17th.
The cost of wire rob has increased sharply in 2007, up to 5300 Yuan per ton. The increasing cost of raw material brings high pressure to Gem-Year. Although the fluctuation of material cost has been over 10%, the price adjustment of Gem-Year's products is still uncertain.
America has taken antidumping investigation on china fastener products in late March, 2008, following EU's antidumping investigation in November, 2007. EU's last verdict will come out in August, 2008. EU-antidumping will bring little impact on Gem-Year, since only 3.21% of Gem-Year's total sales volumes come from EU market. However, America market takes up 30% of Gem-Year's sales volume and Gem-Year's sales will be badly affected if the America-antidumping is approved.