Sanitary industry raw material price surge hits
Affected by the epidemic, many companies have recently stated that the prices of upstream raw materials are rising, and raw materials such as sanitary ware and waste paper are welcoming the first wave of price increases in 2020.
Rising prices of various raw materials
Affected by the tightening of environmental protection policies, the prices of bathroom-related raw materials: plastics, cartons, steel, iron, copper, aluminum, foam, and glass all skyrocketed, leading to bathrooms in many categories, including shower rooms, bathroom cabinets, toilets, and faucets. Manufacturers’ costs have risen, and the price has increased by about 5% to 10%. The prices of bathroom manufacturers in many places have responded to price increases.
Nickel metal prices rose many times
Since July 2019, nickel metal prices have risen several times. Starting from the middle of the year, the nickel price has even entered a very sloping rise. By July 19, the main Shanghai nickel contract closed at 118,430 yuan / ton. Nickel is one of the main raw materials of sanitary products such as faucets and showers. The sharp rise in nickel prices is expected to bring certain cost pressure to related companies.
As soon as the second half of 2019 entered, the peak season for the “Golden Nine, Silver and Ten” of the metal raw materials market had not yet arrived, and nickel prices took the lead. As of the last trading day of last week, July 19, nickel in the LME period rose 2.8% to $ 14,850 / Tons; Shanghai nickel rose 1340 yuan or 1.14%, closing price was 118,430 yuan / ton, nickel prices hit a new high in one year.
Ceramic mud: price rise over 40%
The price of sanitary raw materials is greatly affected by the domestic and foreign economic environment. In addition to metal nickel, stone, ceramic mud, metal copper and other raw materials required for sanitary products, prices have recently risen in varying degrees due to environmental rectification and changes in the global economic situation. .
Due to the environmental protection improvement and the re-upgrading of mines, the price of clay products in ceramic mud has generally increased by 20%. For example, the ex-factory price of Guangxi mixed mud last year was between 160-180 yuan / ton, which has risen to about 230 yuan / ton this year; the ex-factory price of Jiangxi bentonite last year was more than 90 yuan / ton, and this year has increased to about 130 yuan / ton; in addition, The prices of some clay products have also increased by 20%.
Copper: about 2% price increase
On July 18, 2019, Fed officials strengthened their interest rate cut expectations, and global central banks set off a wave of interest rate cuts, driving the metal market higher. On July 19, spot copper was quoted at 47540 yuan / ton to 47780 yuan / ton; Shanghai copper main contract prices rose 2.52% to 47970 yuan / ton; LME March contract prices rose 1.57% to $ 6077 / ton.
Copper is the main raw material of hardware products. A large amount of copper is used in products such as water taps, showers, angle valves, and floor drains. Take a faucet as an example, about 500g of copper is used for every good faucet produced.
Construction raw materials up 600%
Since the end of last year, the prices of cement, sand, and steel for building materials have been rising all the way, and there has been no break for a while. Today, the price has been soaring! Prices keep rising, and even the supply of construction materials is still unavailable.
According to statistics, the prices of raw materials such as cement and sandstone have risen by 600%. The construction industry has also said that “fried real estate is not as good as fried sandstone”, and the cost of real estate construction has doubled.
What is the reason for the rise of sandstone cement?
In the future, pollution control and environmental protection, many provinces will limit the production of cement manufacturers. Since the release of the “Cement Industry Decapacity Action Plan (2018-2020)”, various regions have carried out pollution control and decapacity work, shutting down some small factories that pollute and waste energy at a low cost.
The increase and shortage of sand and gravel prices also require the purchase of cash in line. In addition to the shutdown of the construction site, it will also greatly increase the construction cost of the construction company, making the already overwhelming construction company even worse. The cost increase is the most obvious, or the price difference will be made up by the price increase, and it will eventually be reflected in those buyers who just need a house.
Various costs in the supply chain and the continuous rise in raw material prices have affected the bathroom industry, and have also led many bathroom companies to announce price increases, many of which are still influential companies in the industry.
It can be expected that as the price of raw materials continues to rise, the price of sanitary products will be difficult to drop, and the reshuffle will be carried out in a larger scope. Not only small and medium enterprises, this is also a huge challenge for large enterprises.