One minute become a aluminum foil procurement master

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With the development of the international situation, the trend of global trade, and the popularity of the Internet and transportation, international procurement has become our mainstream. For industrial companies, aluminum foil as a metal raw material is also a non-renewable resource. The restrictions have further led to purchases from other countries. China is a country recognized internationally for low raw material costs and low labor costs, and it is also a country with a large number of exports. Good quality and low prices are along with it.

OK,

When we want to buy aluminum foil rolls from China. We must know the price composition of aluminum foil in order to become a qualified international importer.

So, do we usually let factories offer CIF prices to us?

Let's first talk about the influence factor of the aluminum foil price.

1.Exchange rate

The fluctuation of the exchange rate affects our procurement costs, which is beyond doubt, and I don't want to talk more.

2. The international situation further affects metal commodity futures prices

We often see which countries have fought, which countries have suffered by the natural disaster and virus, like the novel coronavirus, and some changes in the relationship between the Middle East and the United States and countries around the world, all these will affect the price of the aluminum ingot.

This is something we can't decide. All we can do is to reduce the impact of such things on the cost of our products.

3. Shipping costs by sea/air during the peak season

Usually, before Chinese New Year holiday is the peak season, and the cost of shipping will rise. I think this is something you must know.

Ok, let ’s talk about the composition of the CIF price of aluminum foil. I think you can’t wait.

The CIF Aluminum foil price = exw-factory price + land freight from factory to the port+ port of departure cost + sea freight

The composition of the ex-factory price: the price of aluminum ingots, processing fees, (processing fees are based on different thickness, the thinner thickness with the higher price; different width: the narrower width, need the additional slitting and winding, so it’s with higher prices; different alloy states, and annealing different times, the price are different), packaging costs.

So when we ask the factory for a price, we need a detailed price structure in addition to the total CIF price.

There are three benefits to this detailed price:

First, you can compare whether his price is high or low.

Second, there are reasonable reasons for us to bargain the price.

Thirdly, it can reflect whether the supplier reported is true or false, and it can also reflect whether the supplier is reliable and honest.

Aluminum ingot prices

The price of aluminum ingot is basically based on the price of the major metal exchanges on everyday in China. Of course, the factory purchases aluminum ingots from aluminum ingot manufacturers. Some are futures and monthly settlement, some are cash settlement, some are monthly average prices, and some are locked aluminum ingot prices. This will also cause the factory's raw material aluminum ingots prices are different.

Of course, the price difference will not be huge, after all, the price of aluminum ingots accounts 3/4 of the aluminum foils.

Also, some factories or suppliers will use the aluminum materials that is not A00, but use aluminum ingots of A0/A1 or lower-price recycled waste aluminum, these prices will be cheaper.

There are also some relatively large factories. They have their own power plants and aluminum ingot production plants. Because, metal production enterprises rely mainly on electricity, and electricity is also the company's largest expenditure.

If there is an aluminum ingot factory, the relative delivery time and price will be guaranteed.

Usually, after we place an order, the supplier tells us that the production time is one month or two months. The actual production time is at most one week, and the rest of the time is waiting for the raw material of aluminum coils. They may start to produce before one week of the delivery time and delayed the delivery time because of the aluminum raw materials shortage.

Therefore, we should choose a good supplier, they can ensure the delivery time.

Also, there is another reason for the long production time, it is the factory’s schedule of the production. Because, the aluminum foil factories are relatively large company. YUMTOU's sales manager Andy told us that each enterprise has a lot of stable customers to satisfy their machine running at full capacity.

Not running, they may lose more, so they have already arranged the orders production cycle for a few months. In this way, after they received our order, they need to arrange the review and scheduling. The workshop tells the sales the accurate delivery time, and the sales tell their customers. But this is not absolute, and it can shorten the planning cycle, that is, to cut in line, this is depending on our price and our requirements, and the relationship with the sales.

Processing fee

The processing fee is also different between the different manufacturers, this is the profit of the factory, because the aluminum ingots price is fixed, and land freight, port charges and sea freight are not decided by the factory. So, there may be differences in processing fees, this is also an option we can bargain price.

The factory has a set of calculation standards for processing fees. There are different prices depending on the alloy, thickness and width.

Packaging fee

Because, we are purchasing internationally and need long-distance transportation by sea. Therefore, we must ensure the safety of aluminum foils. How to pack is also a major factor that affects the price. The packaging is made according to the customer requirements. Per box/pallet pack 3tons is definitely better than 500kg, the cost of the wooden box was saved. In China, the cost of each box is about 40-50 US dollars, the fewer boxes used, the price will be lower.

YUMTOU's sales manager Andy told us that for the aluminum foils, there are two types of boxes. Ordinary box packaging and the suspended packaging. The cost of suspended packaging is relatively higher, but for the aluminum foil, it is more safe, the aluminum foil will be protected very good.

Finally, it depends on the box materials used by the supplier, whether it is fumigation-free or has a fumigation mark, this may affect the cost of the wooden box.

Land freight

For the land freight, the supplier usually chooses the port closest to them. This will reduce land freight.

If we have other goods to be transported with aluminum foil and we need to put them into one container,

it may be necessary to send the goods from one supplier to another supplier's factory or send all of them to the port of departure, so we can arrange the packing. Don't worry, the freight forwarder and the factory will help us solve it, they are very professional.

International sea freight

For the port charges and sea freight, we can let the factory offer us, and we can find the forwarder agent by ourselves. The price of the freight forwarder we find is lower than the price offered by the factory.

But due to our payment method is CIF, the factory may be use the freight forwarder recommended by them.

If we understand all the price components of the aluminum foil, we will not be deceived in purchasing, and we can compare different suppliers, when we have a price negotiation with the suppliers, It may not always to say that your price is too expensive.

We hope that all our international buyers of aluminum foil will become qualified purchasers and all become kings in purchase.