The company mainly produces straight seam steel pipe, welded steel pipe, welded pipe, high-frequency welded pipe, SAW steel pipe, straight seam resistance welding pipes historical data show ,2002-2005, raw material prices rose, straight seam steel industry during the accompanying increase in inventories of raw materials, company's overall net profit steadily; 2005-2006, raw material prices fell during the straight seam steel industry raw material inventories remain high, so companies net profit declined; 2007-2008 mid-year raw material prices continue to rise sharply during straight seam steel industry, rapid increases in raw material inventory, corporate net income has significantly increased; However, in mid-2008 - 2009 interim, huge drop in raw material prices, straight seam steel pipe industry to reduce inventory, but the company net profit fell to low speed. Now, as a measure of industrial enterprises of raw materials, fuel and power purchase price index, PPIRM the month three months year on year decline has continued in 8,9,10 narrowed significantly, the cumulative year on year decline has bottomed out (see Figure 1). With straight seam steel, nonferrous metals, chemicals, building materials manufacturing industry continues to recover, the upstream raw material prices rising trend in the future more certain. Stage in raw material prices, pre-stock company has more raw materials must be able to drive down costs, thus greatly enhancing the current performance.