Copper Prices Continue To Rise, And Many Well-known Brands Announce Price Adjustments
Following Hansgrohe China’s average price increase of 5% for its products, Geberit America also announced recently that it will increase product prices by 3.5% from June 1, 2021. In a recent quarterly report, Geberit also revealed that one of the reasons for the increase in sales from January to March was the increase in product prices. Geberit also predicts that the price of raw materials in the second quarter of 2021 will increase by 5% on the basis of the first quarter.
Geberit of the United States announced a 3.5% price increase,
Executed in June
According to foreign media CONTRACTOR, Geberit America recently announced that it has decided to increase product prices by 3.5% from June 1, 2021, taking into account factors such as rising raw material prices and the epidemic.
Phil Boggs, senior vice president of sales of Geberit America, said that every year there will be new changes. Geberit America is proud to continue to provide products to residential and commercial customers. He thanked customers for their support to the company. Phil Boggs revealed that the new product catalog and pricing list will be available in June. He recommends that dealers search for the latest product pricing through the Geberit US official website.
According to Geberit’s recent first-quarter earnings report, the price increase may not be limited to the US market. From January to March 2021, Geberit achieved sales of 910 million Swiss francs, an increase of 14.0% year-on-year; it achieved EBITDA (earnings before tax, interest, depreciation and amortization) of 315 million Swiss francs, an increase of 21.1% year-on-year.
The financial report shows that rising product prices are one of the reasons for sales growth, indicating that the company may have started price increases earlier than the first quarter in some markets. Geberit said that it will further expand profit margins in the future, one of the measures is to increase product sales prices.
Geberit also stated in the financial report that the increase in raw material prices has not yet had a major negative impact on the company’s operations. However, Geberit has listed the raw material price index from 2020 to the present, indicating that the current price index has risen to more than 103 points and has been below 100 points in 2020. Geberit said that the increase in raw material prices will begin in December 2020 and is expected to increase by 5% in the second quarter of 2021 from the first quarter.
Hansgrohe increased its prices by 5% in China,
LIXIL said some supplies may be out of stock
This round of raw material price increases is a global event. In addition to Geberit, companies such as Hansgrohe and LIXIL are also affected. On April 23, Hansgrohe China issued a price adjustment notice to its partners, stating that it will increase prices from July 1, 2021. The prices of Hansgrohe and Axor brand products will increase by an average of 5%, and some products will be structured. price adjustment. Hansgrohe stated that raw material prices have risen sharply in recent months, far exceeding expectations. At present, Hansgrohe has adopted an active purchasing policy and increased inventory at the same time to offset part of the cost increase. However, because the trend of high raw material prices is difficult to change, price adjustments must be made based on current costs.
LIXIL has not publicly announced a price increase, but the increase in raw material prices has obviously had an impact on its operations. In the 2020 fiscal year report, LIXIL stated that there is no major problem in global supply at present, but due to high raw material prices, there may be insufficient supply of some materials in the future. LIXIL also listed the price trends of two raw materials, aluminum and copper, indicating that the purchase prices of the two commodities have continued to rise since the 2020 fiscal year. Previously, the LME (London Metal Exchange) three-month futures price reached US$2,152. /Ton and US$6,743/ton
The price of copper is approaching the highest point in history,
A variety of metal materials follow up
Bathroom products require a large amount of metal raw materials, especially copper, nickel, aluminum and other metals. According to public information, today (May 7) copper prices hit a new high. The manufacturer’s spot 1# copper price reported 74280 yuan/ton, an increase of 1430 yuan/ton from the previous trading day; Guangdong spot 1# copper price reported 74350 yuan/ton, Increased by 1,600 yuan/ton. Internationally, copper prices are accelerating toward historical highs due to factors such as stimulus measures, vaccine launches, and commitments to address climate change. On Tuesday, the international copper price continued to rise. The LME copper price once rose to US$9,965/ton, an increase of 2.2%, the highest since March 2011, and approaching the historical record of US$10,190/ton in 2011. The rise in copper prices has driven the metal market from aluminum to iron ore to rise across the board. The current aluminum price has also hit a new high in the past three years. Today, the Yangtze River spot price is 19130 yuan/ton. Nickel prices have also continued to rise. After breaking through 130,000 yuan/ton on April 29, they reported again at 13,2,500 yuan/ton today, an increase of 2,500 yuan/ton from a week ago. In view of the fact that the price increase of raw materials is an objective fact, many companies transfer cost pressure through price increase, and sanitary ware companies are no exception. However, some experts pointed out that the price increase should be done in one step as much as possible, and the price increase should not be increased every three times. It should be firm and convincing.
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