During the past several months, manufacturing costs in China have experienced significant inflation. This includes hot rolled coil steel, which is the primary raw material used in the production of our component products. Our initial belief was that we could absorb these increased costs. However, prices have continued to rise beyond preliminary expectations. As a result of the steel and related increase, we must raise selling prices on all product purchase orders by 15% effective January 1st, 2021. The increase will take effect on the the shipment date on or after January 1st, 2021. If you have any demands of products recently, please make a new inquiry before placing the order. Our team will be communicating with you shortly.
The costs of steel and other raw materials are rising greater than the current increase reflects. So we are monitoring the raw material situation closely and will communicate any change beyond this announcement with our clients as costs either increase or decrease in the future.
Thank you for the business relationship that we have and know that we will continus to best service your needs as a componet supplier adding value to finished furniture.