Date: November 10, 2025
In the staple and nail industry, one question comes up frequently: “Can we get a fixed price for six months or a year?”
We fully understand this request. Stable costs simplify budgeting, quoting, and financial planning. For any project, predictable expenses are ideal.
However, as one of China’s top-five staple and nail manufacturers, we must be honest: providing a sustainable long-term fixed price is nearly impossible. Any such promise inevitably leads to significant losses for one side.
The reason lies in the nature of our product. Staples and nails are low-margin, cost-sensitive standardized goods. In their cost structure, raw steel accounts for 40%–70% of the total unit price.
This means the price of staples and nails is fundamentally determined by steel prices. So, the real question isn’t “Can staple and nail prices be fixed?” but “Can steel prices be fixed?”
And the answer is no.
Why Steel Prices Are Inherently Unstable
Steel market volatility is not random. Its price changes are mainly driven by three forces:
- Supply-Side Factors: The cost of raw materials (iron ore, coking coal) and domestic policies, such as environmental production cuts, directly impact the base cost of steel. When mill supply tightens, that cost increase is passed directly to us.
- Demand-Side Factors: The health of the real estate, infrastructure, and manufacturing sectors dictates market demand. Strong demand pushes prices up; weak demand pulls them down. These are macro factors we cannot control.
- External and Short-Term Shocks: International trade policy, futures market speculation, seasonal construction cycles, and global events can cause sharp, unpredictable price swings in the short term.
A Simple Analogy:
Think of steel as the engine and staples and nails as the car body. If the engine’s RPM constantly surges and falls, the car cannot ride smoothly, no matter how well-built the body is.
Asking for a fixed staple and nail price is like asking that volatile engine to run at a single speed for six months—it’s simply not feasible.
A Win-Win Strategy: Managing Price Variability
Since eliminating price movement is impossible, the smartest approach is to create a partnership that manages fluctuations fairly.
✅ Short-Term Qutation Validity
We operate on a quotation basis with clear validity periods. When you have an enquiry or a specific order, we will provide a firm price based on the current steel market rate. This price is typically valid for 10 days, and a maximum of one month to accommodate specific customer preferences, ensuring cost certainty for your immediate projects.
✅ Implement a Floating Price Range Mechanism
For long-term cooperative partners, we strongly recommend adopting a floating range + excess adjustment mechanism:
- If steel price fluctuations are within ±3%, the nail price remains unchanged.
- If fluctuations exceed ±3%, the excess portion is adjusted according to actual market price changes.
Benefits of this approach:
- Avoids frequent minor adjustments, making budgets and financial planning predictable.
- Timely adjustments for significant fluctuations, protecting the interests of both parties.
- Transparent and fair, allowing both sides to anticipate changes based on market trends.
✅ Focus on Total Value
The greatest value in a supplier partnership isn’t saving a few cents on one order. It lies in:
- Guaranteed quality
- On-time delivery
- Technical support and process optimization
A reliable partner secures your supply chain, which is far more valuable than short-term price stability.
Hidden Risks of Blindly Pursuing Fixed Prices
We have seen many cases where clients, in order to lock prices, turn to small factories promising “no price increase for six months.” The results often include:
- Reduced quality: thinner galvanization, lower steel grade, wider dimensional tolerance, leading to decreased rust protection and lower construction efficiency.
- Unstable delivery: suppliers under loss pressure may delay or suspend deliveries, severely impacting project schedules.
- No after-sales guarantee: issues cannot be traced back, leaving all risks with the client.
On the surface, the client “wins” on price, but in reality loses on quality and reliability. Experienced clients understand that supply chain stability is far more valuable than minor price fluctuations.
Conclusion: Stability Through Partnership
Nail prices cannot be fixed long-term due to the fundamental economics of our industry, not a lack of willingness on our part:
- Cost dictates price
- Supply and demand dictate volatility
- External factors add uncertainty
We cannot promise a price that never changes. But we can promise a partnership that is transparent, fair, and robust enough to navigate market changes together.
