How do manufacturers of vertical multi-stage long axis submersible turbine pumps respond to fluctuations in stainless steel prices?

In 2026, the stainless steel market will be in a narrow range oscillation pattern of "strong cost, weak demand". The quota for Indonesian nickel ore on the raw material side will be significantly reduced, and the prices of auxiliary materials such as nickel iron will remain high and firm. In addition, factors such as the delay in the Federal Reserve's interest rate cuts at the macro level will limit the price range, which will bring direct cost pressure to manufacturers of vertical multi-stage long shaft submersible turbine pumps with stainless steel as the core material. Based on industry characteristics, top manufacturers  of vertical multi-stage long axis submersible turbine pumps mainly respond to fluctuations in stainless steel prices through the following methods:
1、 Refined cost management and control
Centralized locking price procurement: Top manufacturers sign long-term framework agreements with mainstream steel mills based on their scale advantages, locking in the purchase prices of commonly used stainless steel materials such as 304 and 316L, avoiding short-term spot price fluctuations, and reducing premiums in intermediate trade links.
Optimizing material utilization rate: By upgrading precision casting technology and optimizing modular design, the processing waste of stainless steel plates and rods is reduced, and the material utilization rate of core overcurrent components is increased by more than 10%, reducing the material consumption per unit product.
Inventory dynamic management: Referring to the trend of stainless steel prices, we will moderately stock up during the low price stage, and implement the "fast in, fast out" inventory strategy to compress the turnover days of raw materials to 70% of the industry average level, avoiding the accumulation of high priced inventory.
2、 Product end structure optimization
Material grading adaptation: Differentiated material solutions are introduced for different working conditions. 304 stainless steel, which is more cost-effective, is used for conventional clean water transportation scenarios. Special materials such as duplex steel and 904L are selected for strong corrosion scenarios. In some mild corrosion scenarios, fluorine lined structures are used instead of all stainless steel designs to flexibly control costs while meeting performance requirements.
Increased proportion of high value-added products: Focusing on high-end demand fields such as new energy and wet metallurgy, we have launched customized long axis submersible pumps with intelligent monitoring and high-efficiency energy-saving properties. These products have a higher premium space and can effectively hedge the cost increase pressure of basic stainless steel materials.
3、 Industrial chain collaboration and risk hedging
Downstream transmission mechanism: Establish a material price linkage mechanism with long-term cooperative industrial customers. When the price fluctuation of stainless steel exceeds the agreed threshold, adjust the product quotation through friendly negotiation to avoid unilaterally bearing all cost pressures.
Financial instrument hedging: Some standardized model manufacturers use SHFE stainless steel futures for hedging, locking in the procurement cost of raw materials for a period of time in the future, and smoothing out the operational risks caused by the wide fluctuations in the futures market.
At present, leading vertical long shaft submersible pump manufacturers in the industry, including HUNAN PERFECT industry, have implemented the above-mentioned measures and maintained a relatively stable operating state in the stainless steel price fluctuations in 2026.