April 30, 2025 – Global Sourcing Insight by a China-Based Exporter
As the US national debt surges past $36 trillion and Treasury yields reach 5%, global buyers of steel and refractory materials are facing increasing uncertainty. Procurement managers are dealing with currency risks, price instability, and financing pressure — challenges that are reshaping the way raw materials like silicon carbide (SiC), fused magnesia, white fused alumina, and high alumina cement are being sourced.
✅ Procurement Pain Points in 2025
From conversations with our clients across Europe, Latin America, Southeast Asia, and Russia, here are the common concerns:
Volatile Exchange Rates: Weaker local currencies (BRL, TRY, VND, RUB) are driving up the import costs of dollar-priced materials.
Rising Interest Rates: High financing costs are limiting buyers’ ability to stockpile inventory.
Demand Uncertainty: Steel and cement production have slowed in many markets, leading buyers to adopt conservative sourcing strategies.
✅ Exporter’s Strategic Advice for Buyers in Uncertain Times
As a seasoned exporter of refractory raw materials, we recommend the following proactive procurement strategies to mitigate market risk in 2025:
1. Switch to Smaller, More Frequent Shipments
Avoid overstocking by breaking large orders into phased deliveries,This controls cash flow and reduces inventory pressure.
2. Negotiate FX-Protected Pricing or RMB-Based Contracts
Request quotations in RMB or with an FX-adjusted pricing clause. This helps mitigate risks from local currency depreciation, especially in LATAM and Eastern Europe.
3. Secure Supply With Flexible Payment Terms
We offer 30% advance + 70% against BL, with options for LC at sight or OA for long-term partners. In volatile markets, flexible terms can be a game-changer.
4. Prioritize Critical Raw Materials With Tight Global Supply
Focus your procurement on materials with long production lead times or limited global availability, such as:
Low Fe2O3 Silicon Carbide (SiC 97% min)
Dead Burned Magnesite (DBM 90/92 grade)
Tabular Alumina and High Alumina Cement
5. Plan Ahead With Transparent Delivery Calendars
We help clients build rolling 3-month procurement plans, including production slot reservations and fixed freight rates, which allow for cost predictability and stable supply.
✅ For Steel and Refractory Buyers in 2025, Predictability is Power
In today’s global environment shaped by the US debt crisis, interest rate hikes, and FX instability, buyers must rethink sourcing strategies. Our team supports clients not just with competitive pricing, but with supply chain foresight, technical documentation, and local compliance support.
✅ Work with a China-based refractory raw material supplier that understands both your technical specs and your financial pressure.
Looking for a sourcing partner who can help you navigate this uncertainty?
Get in touch with us for a custom procurement plan tailored to your region, product specs, and financial conditions.www.okgmineral.com
