This is the Summaries of 2020, Prospect of 2021 for the market of stainless steel faucets.In fact, all business in 2020 can’t ignore the Corona Virus impacts, and below you can see the general situation of stainless steel faucets. No matter how, we should can get lessions from this crisis and learn that how important to protect the earth.
At the end of the 2020, we can figure out that the overall market of stainless steel faucets is not highly impacted, In contrast, the sales are driving better with a higher rate demand of touch free faucets, outdoor faucets for grills, drinking water faucets for purifiers. In fact ,there are more complicated reasons that make the demand stronger, like the deduction of properties and the anxieties of having a new house in rural area, lower bank rate and more money released by local central banks, kitchen and bathroom remodeling to kill time at home and so on. And thanks to the developments of online stores in recent years which make the market keep moving in a virtual way. If the Corona Virus comes a decade ago, it will be a bigger disaster. So the healthy and eco-friendly stainless steel faucets, are luckily good demanded in 2020 even some public projects postponed in a indefinite duration. In 2021, the uncertain factors still exist, but consumption is getting more and more confident with the low fatality rate of COVID-19 and coming of vaccine, so the stainless steel faucets will be keeping increasing as more authorities,organizations and families concern about the environmental protection and water safety. We can tell that as we have new business partners coming from new countries that seldom sell stainless steel before and now started to order and proceed the local certificate application.
It was a big mess at the beginning of 2020, the Corona Virus hit us firstly in China and almost all production postponed to the end of March. when production resumed back in April but then the Corona Virus starts in EU ,USA and more and more countries. The market confidence got frozen suddenly, most shipments called for delaying in a indefinite duration and new procurement stopped. But the situation changed dramatically from May ,the procurement kept increasing and many orders rushed together. Excluding the rebound of market, another reason is, China got a successful control of the Corona virus Epidemic which create a stable and safe production environment, while for the other countries, the Epidemic made the manufacturing and shipments uncontrollable, hence the coming back of procurement is obviously strong and one of the most outstanding groups is the worldwide manufacturers. It seems that the COVID-19 epidemic is the main reason for the increasing of production outsourcing, so this phenomenon should last at least 1 year until the vaccine come into use massively. Generally the procurement will the same as the market situation, but there is one thing to warn, the prices of the various raw material are increasing. For stainless steel, the rise already come to the original bars/robs/sheets, probably some of you have received the notice from your stainless steel sink suppliers, if it keeps going, you will get more notice from other suppliers.
Because the strict administration policy from government in early stage, We were just allowed to restore 50% capacity,but the production schedule was still Okay as many orders requested for shipment delay. We have resumed 100% capacity since from May ,but the production started to overwhelmed from Jun, 2020 and our casting production line has been overbooked to Spring season of 2021 at present. We have to admit most of the new orders coming from July were delayed greatly due to the gatherings of procurement, currently only a few partners who started the new product development and production as normal enjoy a prompt production and delivery schedule, and it proves to be rewarding with their strong sales. If taking an overview of the whole industry, it is almost the same story that the 2nd half year is crazily busy. What makes the production situation worse is, some imported raw material, like Kerox Cartridge are in short supplied and it should be keeping the same if the local COVID-19 is not well controlled; On the other hand, It is very difficult to increase the capacity currently due to the lack of labors, You may not understand but this is damn true that many workers prefer to stay in hometown for the rest 2020 as Chinese New year is coming in a nearby future, so the production schedule would be tight and last till the 1st half of 2021 but should back to normal on the 2nd half year.
The International transportation is totally totally messy, if you are optimistic that the 2nd half year will get better then you will have tears. We have one shipment that, the faucets are ready at the end of August but have to wait until the end of September to load due to the lack of vessels and containers. Speak of this, please never ever make shipments right before National day and Chinese Spring Festival, you will get nothing good except for higher freight and longer transit time. But it is weird that it is happening every year when we warn customers to make good plan according to their inventory and our production lead time to avoid the peak time. Anyway, the international transportation will apparently keep messy and short supplied in 2021, it is not just a reduction of supplies from the shipping lines, but also the less rounds of container transits from the destination port to the loading port（stay longer at destination port). And for the freights, we all know how crazy they are, so no more comments here.
In short words, No matter the global economy is better or worse in 2021, the market of stainless steel faucet should be stable and better than 2020. If you are worried about the uncertainty and prefer to letting time tell. Then at least make good plan for the period between Nov,2020 to Mar.01,2021. As Christmas and New Year Holiday mostly starts from from 24th, Dec to 1st Jan (Just a general saying,not specifically) while Chinese New Year holiday mostly starts from 1st, Feb to 26th, Feb and the official production restoration will be around Mar.01,2021 averagely , due to the 45-90 production lead time of stainless steel faucets, the soonest next supply will be in May.
Finally, we hope the world can stay together to beat the Corona Virus, and together we can make forward.