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Original Lin Xiaoxiong Kitchen And Bathroom Information
In recent days, the kitchen and bathroom industry’s hottest topic is not “raw material prices”, including copper prices are particularly obvious. February 25, Shanghai copper main contract rose nearly 4% after the opening, on the 70,000 yuan / ton, for the first time since August 2011. Many industry players have sent friends to flirt, “the word price increase is too vulgar, should say: Congratulations! You choose something appreciated, and the latter will continue to appreciate.”
“Copper is roaring, iron is screaming, stainless steel is snickering, aluminum alloy is laughing, glass is also bouncing, raw material cost fever, the previous offer has been invalid, the market has no regret medicine, the price has been all messed up. Spot is the real king! Please ask in advance to place an order, the price of the day prevails.”
Copper price increase how “fierce”? Some industry sources said that in 2020, copper prices rose from 44,000 to 58,000 yuan / ton, with 60 days; 2021, copper prices rose from 58,000 to 70,000 yuan / ton, with only 6 days. In other words, from 2020 to now nearly a year, copper prices rose directly by nearly 60% to reach a new record high.
Copper as the main raw material for products in the kitchen and bathroom industry, with copper prices continue to go high, is bound to bring impact to the kitchen and bathroom industry. According to the kitchen information reporter learned that, in addition to the rise in copper prices, kitchen and bathroom products required for stainless steel, aluminum and other raw materials prices have also risen sharply.
Behind the crazy rise in copper prices
So copper and other raw materials behind the price increase, what is the reason?
Aoyo bathroom general manager Xie Wei told the kitchen and bathroom information reporter, copper prices rose mainly because the Federal Reserve monetary “water”, resulting in a large amount of global funds. Along with the global epidemic began to be effectively controlled, the global economy began to recover, copper is the most bullish investors a variety, so it rose the most, the price is not expected to peak now, but the late rise will gradually decelerate, another example is aluminum, nickel, tin, zinc raw materials, because the global monetary easing still continues, the short-term non-ferrous metal plate is difficult to fall sharply.
A copper business people who do not want to disclose their names to the kitchen information reporter, the main reason is that the Federal Reserve released water, under the flooding, the momentum of the rise is very strong. And China is a manufacturing center, a strong recovery, the use of raw materials are also strong, so inflation to China.
It can be seen that the Federal Reserve monetary overdraft led to global monetary easing, inflation; at the same time, with the promotion of domestic and foreign vaccines, so that the epidemic is gradually being effectively controlled, investors are increasingly optimistic about the overall economic recovery, which is the main reason for the rising prices of raw materials such as copper.
Kitchen and bathroom companies how to deal with the “price hike”
In the upstream copper and other raw materials prices, kitchen and bathroom enterprises, the procurement costs and production costs of kitchen and bathroom products must increase, if the price of raw materials will continue to rise, then the kitchen and bathroom enterprises, it will be a difficult challenge.
Xie Wei said, for the kitchen and bathroom industry products, is expected to be sure to increase the price. Copper prices rose so much, faucets and other products do not go up, because there is no profit margin. So it is expected that kitchen and bathroom products in April to May there will be a significant price increase, the rate of increase will be between 5%-18%.
Under the current white-hot market competition environment, product price profits tend to be transparent, coupled with the crazy rise in raw material prices, so that the kitchen and bathroom business profits are close to depletion, product price increases seem to become a necessary initiative.
The person said that now there are also many companies that are sending a message to inform customers to ask for quotes before placing an order, they have said straight out of the top. Kitchen and bathroom companies are best able to negotiate with customers on the material price fluctuation mechanism, how much the material goes up or down, then price adjustment to avoid risk.
In terms of product price increases, some kitchen and bathroom companies have indeed made moves. Some industry insiders said that the old orders do not increase prices, new orders inquiry according to the day of the offer.
It seems that the old order price increase is not too much? If the kitchen and bathroom enterprises will be the price of products, it is necessary to adapt to local conditions, and customer coordination, to find a price balance, if not, it is not surprising that the old single voided.
In addition, in the kitchen and bathroom products in foreign exports, Xie Wei said, although product exports will be affected by the product price increases, the whole industry trend will not change. After the epidemic global economic recovery, the whole increment should be there. But the size of the increment is not easy to say, it is expected that after May, the whole expectation will be more up, to the second half of the year is estimated to be a growth process.
The person said, now kitchen products exports although affected by the appreciation of the yuan, raw material prices rose sharply, profit margins have been compressed, exports have not much money to earn or marginal profits, the kitchen products exports still have to do.
The copper and other raw materials prices of the crazy rise whether the global kitchen market butterfly effect is worth to remain vigilant, kitchen information will also continue to pay attention.