Because the downward trend of forging prices may be related to a variety of factors. Here are some possible causes and effects that you can consider to make a decision: 1. Supply and demand: If the demand in the market is low and the supply is high, the price of forgings may fall. This may be due to economic recession, industry depression, or technological innovation. 2. Raw material cost: Raw materials, such as metal, are required for forging production. If the price of raw materials falls, then the price of forgings may also fall. 3. Technological progress: With the advancement of technology, the efficiency of producing forgings may be improved, thereby reducing production costs, which may lead to a decline in the price of forgings. 4. Competitive pressure: If there are more suppliers competing in the market, they may attract customers by reducing prices, which may lead to a decline in the price of forgings. When deciding whether to invest, you need to carefully analyze multiple factors such as market trends, supply and demand, industry prospects, and the financial condition of the company. It is recommended to consult a professional and conduct a comprehensive risk assessment and market research to make an informed decision.
