Want to cut prices for bathroom products?
The prices of raw materials such as copper, nickel, steel, and waste paper have fallen collectively. What will happen?
Starting from the end of 2016, the prices of raw materials such as copper, nickel, steel, and waste paper required by the sanitary ware industry have entered the upward channel, and reached the highest peak in mid-February 2017. Starting from last month, raw material prices began to fall, domestic nickel prices hit this year’s low in late March, and steel prices also fell due to orders reduction. In response to the market, steel companies have successively reduced production lines to avoid risks. Copper: down 2,000 yuan / ton from February. In February 2017, the union of the world ’s largest copper mine, Chile ’s Escondida Copper Mine announced a strike. During this period, the world ’s second largest copper mine and Indonesia ’s Grasberg mine also suspended exports. . Affected, the spot copper price in Yangtze River reported 49,580 yuan / ton, up 2730 yuan / ton; the spot copper price in Guangdong rose to 49,880 yuan / ton, up 3020 yuan / ton. The good times do not last long. Domestic spot copper prices have fallen since late February, and there have been mixed ups and downs in March, but the highest did not exceed 47,600 yuan / ton, and the lowest appeared on March 27, falling to a low of 46,000 yuan / ton. On April 7, the average spot copper price was 47,540 yuan / ton, which was more than 2,000 yuan per ton relative to the February peak. Copper is the main raw material of hardware products, including water dragons, showers, angle valves, floor drains, and other products. A large amount of copper is used. Taking a faucet as an example, about 500g of copper is used for each good faucet. This drop in copper prices is a major benefit for hardware and sanitary ware companies. Nickel: In March 2017, it fell to 80,000 yuan / ton. In February 2017, the Philippines closed many major nickel-producing mines. Affected, spot nickel and futures nickel both increased in price. At that time, the price of domestic spot nickel rose to 90688 yuan. / Ton, a new high in recent years. The domestic nickel price maintained a high level before the beginning of March, but then fell sharply, and fell to nearly 80,000 yuan / ton in mid-March. Although it rose slightly afterwards, it has recovered from the high price of 90,000 yuan / ton in the previous month. normal level. On April 6, domestic spot nickel prices reported 84812.5 yuan / ton. Nickel is an indispensable raw material in the field of sanitary ceramics. The surface of the faucet needs to be electroplated. The electroplated layer is generally composed of a layer of nickel and a layer of chromium. Nickel can improve the wear resistance and corrosion resistance of faucets, and effectively extend the life of products. The nickel layer of high-end products can be as thick as tens of microns. In addition, some ceramic sanitary wares will also be coated with nickel to make the surface have a metallic luster to increase the sense of style. Steel: The price of stainless steel fell by more than 1,100 yuan / ton compared to February. The most serious drop was steel. Affected by the capacity recovery of downstream enterprises, environmental protection supervision and capacity reduction, steel prices also soared from February to February 17, the national average steel price was 3670 yuan / ton, up 5.16% week-on-week. The high steel price bubble burst in March. As the production limit or suspension of steel mills resumed production, steel prices began to fall since late March. As of March 26, the domestic spot steel price composite index closed at 135.98 points for a week. It fell 2.58%. According to the latest data, as of April 5, the domestic steel price composite index was 132.56, a decrease of 2.52% week-on-week. For stainless steel, domestic spot prices have also fallen since March. On April 6, the market price of 304 stainless steel plate 1.0 * 1219 * 2438 was reported at 14,396.15 yuan / ton, down more than 1,100 yuan / ton from the highest point in the previous month. The main products used in bathroom products are bathroom accessories and shower door handles. Stainless steel is also used in bathroom accessories. In addition, a large amount of stainless steel is required for the stainless steel faucet, which currently accounts for 5% of the faucet market. As steel prices fall, the raw material procurement costs of these companies are also expected to fall. Waste paper: Declined from March and decreased by 300 yuan / ton from the historical high. Although it is not a raw material for sanitary ware, it is still indispensable due to product packaging. At the end of 2015, the average price of white cardboard market was around 4300 yuan / ton, and by the end of 2016, the average price had risen to 5300 yuan / ton. Paper prices have generally fallen since March 2017, and waste paper, the main material of packaging paper, has plunged. According to incomplete statistics, from March 1 to March 31, the price of waste paper has dropped from a historical high of about 1,800 yuan / ton to about 1,500 yuan / ton. The analysis believes that the current downstream corrugated base paper is in the off-season of demand, and the stocks of papermaking enterprises have increased. It is expected that the price of corrugated base paper will be in a state of decline for a considerable period of time. The price of raw materials has fallen. Will the sanitary ware price drop? The price of raw materials for sanitary ware has risen sharply since December last year. I believe the industry is also impressed by the skyrocketing price hike of raw materials. Although some people predicted that bathroom products would collectively increase prices by 15% to 30%, the actual price increase of products was after the Spring Festival in 2017. As the prices of raw materials are lower, it is expected that sanitary ware companies will purchase more easily than before. However, under the situation that the country is carrying out a new round of environmental protection, it is expected that the chances of substantial reduction in production costs of the companies are very small. It is easy to raise prices and it is difficult to lower prices. Just need the crowd to start early. For more information on faucet prices, please pay attention to China Faucet Industry Network: http://vigafaucet.com/