The rise in prices of steel and other raw materials will inevitably affect the rise in the price of plumbing and sanitary ware. This is also an inevitable development of the market.
According to the reporter’s understanding, among the downstream consumer structures of copper and steel, the proportion of household appliances such as ice washing, air conditioners, and smoke stoves is relatively large. With the stimulation of home appliances and old-fashioned exchange policies, it is expected that the growth of air-conditioner and refrigerator production in China will maintain a high growth rate of 15% and 10% in 2011.
In the first wave of price increases in the market, white goods will take the lead and the price increase will be expected to be around 5% to 10%. Some factories already have plans to begin formal price adjustments in the near future. In order to ensure the stable price of electrical appliances during the Spring Festival, large home appliance chain retail enterprises, including Suning, have already conducted underpricing through advance purchases and scale purchases.
Upstream raw material prices "sound up" continuously
With the soaring price of several major raw materials, many home appliance manufacturers seem to have lost their patience.
Since the beginning of last December, the international copper price has repeatedly set a record high since it broke through 9,000 US dollars/ton. According to Shanghai ** market data, the copper price rose by 32% year-on-year in half a year, while the steel price rise for two consecutive months will continue into the first quarter of this year.
In the endless chatter, downstream home appliance manufacturers can no longer maintain calm. “The mainstream brands of air conditioners, refrigerators, washing machines, cooker hoods, cookers, sanitary ware, sterilizers, and water heaters, etc., will gradually have a 5%-10% price increase,†said one channel person. In the current mainstream products, some price adjustments are made. On the other hand, most of the air-conditioning manufacturers will shift to mass production of mid-to-high-end air-conditioning products in response to the 2011 product line strategy adjustments.
In stark contrast to this, China's refining copper gap may reach 2.44 million tons in 2011, which is higher than the 2.25 million tons in 2010. Experts expect the price of steel for home appliances to rise at least in the first half of 2011. The trend, the price increase may be 20% to 30%.
White appliances or price increase "advance team"
“There are many factors that increase prices. In addition to steel-copper price and policy reasons, the recent crude oil market price has exceeded the high price of 91 US dollars/barrel. In addition, due to the increase in coal costs, the price of electricity has also further increased, plus the The sharp reduction in the number of migrant workers in the Pearl River Delta and Yangtze River Delta region in 2010 will inevitably continue to affect the increase in manpower cost for home appliance manufacturing in 2011.†As a representative of the channel, President Suning Appliance Jin Ming said in an interview with reporters yesterday that many factors All of the white goods and smoke stoves that were newly produced in 2011 brought pressure on prices.
At present, most household electrical appliance companies in China are very arguing about the wind of price increases. Several major home appliance makers are cautious when interviewed by reporters. A spokesperson for a white-electric company stated that, in addition to external factors, well-known companies in the industry will intensify their investment in research and development this year; in addition to channel development costs, the cost of products will naturally rise, but companies themselves will strive to control Peer price wars fell under the wind.
Before the Lunar New Year, the electrical new year market is coming. Is this part of the price difference already transferred to consumers? Suning said that it will not be for the time being. According to Jin Ming, the company had previously planned for the continued rise of raw materials in the upper reaches of the market, and had advanced procurements for the main raw material consumables of copper and steel such as air conditioners, refrigerators, washing machines, smoke stoves, and range hoods, and had completed the first price increase. Monolithic mining, suppression of the price of terminals before the holiday white goods rose.