Starting in July, the traditional peak season of home building materials sales is beginning to open the curtain, but the price increase has been overshadowed in advance for this year's peak season promotion. Under the pressure from the regulation of the property market, inflation, and rising raw materials, the home industry is entering an unprecedented downturn, and rising costs have made smaller profit margins smaller and smaller. Under such circumstances, companies have to choose to increase their selling prices in order to maintain basic operational survival.
Home building materials market prices rose, behind this is the unbearable price rise of the vast number of consumers the pain, this year's off-season home building materials or will continue to last longer than before, this is not a person's battle, it is a protracted war!
Home building materials prices continue to rise
A person in charge of a home building material city in Nanjing said that as early as March, price increases had already involved floors, bathrooms, tiles, paints, cabinets, wardrobes and other home improvement building materials. One line of bathroom brands rose 5% to 8%, first-tier tile brands rose more than 5%, first-line paint brands rose 10%, first-line cabinet brands rose between 5% to 15%, first-tier floor brands also rose 3% ~15%.
The price of wooden flooring has been continuously raised three times since November 1 last year. A building materials market manager told reporters that many small and medium-sized brands each increase in the range of about 2 to 3 yuan per square meter, up to no more than 10 yuan per square meter; but some well-known brand floor rose. Such as a large-scale brand of a "classic teak" series of floors, the price from the original 93.5 yuan per square meter, soared to 126 yuan per square meter.
Home building materials have experienced a price increase before and after the Spring Festival, but prices are still continuing. After two years of rising tides in the years before and after the beginning of the year, the prices of home building materials in China ushered in a relatively stable period; however, following the “May Day†and other major festivals, new tides of price increases are brewing and the price of building materials in July is increasing. It is inevitable. According to the person in charge of Jiusheng Flooring, “In early July, the price of some products in the store will be raised, and the rate of increase will be 10%~15%!â€
The main reason for price increases is the increase in costs
Invariably, all merchants increase their prices because of rising raw materials and labor costs. Li Yujie, secretary-general of the National Association of Industry and Commerce Home Decoration Industry Association, said that since the beginning of last year, companies have been burdened with rising cost pressures, but because the market is not good, they are not eager to adjust prices. After one year's self-digestion, companies have become very difficult not only to make profits, but even to run their normal operations. Upgrading prices is indeed a frustrating move.
A domestic cabinet business manager told reporters that starting from the second half of 2009, raw material prices skyrocketed and prices of raw materials such as logs and alloys continued to increase. The increase in imported wood prices could be described as crazy. In the first half of this year, the price of Vietnam Huanghua Pear (abbreviated as “yellowerâ€) was about 2 million yuan/ton at the beginning of the year, and it has now risen to 3.6 million yuan to 4 million yuan/ton, an increase of up to 100%.
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