The rise in raw material prices has caused the appliance industry to raise prices

A number of home appliance brands announced price increases

In the second half of 2016, affected by the upstream supply chain, steel, copper, zinc, aluminum and plastics all ushered in different price increases, resulting in increased production costs of home appliances. Air conditioners, TVs, water heaters, refrigerators and other categories, due to the relatively large demand for raw materials, the price increase is relatively large.

At present, many home appliance brands have announced the price increase. After the "Double Twelve" offer, Gree air-conditioner announced that the air-conditioner price will increase by 50-100 yuan per unit from December 19; on December 26, the US air-conditioner will issue a price increase notice, and the price will rise by 50-200. Yuan, the three ice wash brands of Midea, TCL and Omar also sent a price adjustment letter to the dealers. Since January 1, 2017, the refrigerator freezer washing machine has implemented a new price system.

The pressure of raw material price increases is gradually passed on to consumers

For the reason of price increase, the home appliance company's statement is the same: First, the price of materials (steel, copper, plastics, etc.) has risen sharply, secondly, the logistics cost has increased continuously, and third, the increase of labor costs, the transfer to consumers is also forced by each Cost pressure.

According to a number of color TV executives, the price increase of the panel in 2016 was quite high, which caused greater operating pressure on color TV companies with weak profitability, and the price increase was forced to help.

The reason for the price increase of air conditioners is that the price of air-conditioning raw materials has increased across the board, and bulk materials such as cartons, copper, zinc and aluminum are all rising. According to the price monitoring of professional institutions, the average price increase of plastic products in the third quarter of 2016 was 4.92%, of which PVC price increased by 25.79%, ABS price increased by 13.67%, and the price of PP also increased by 1.39%. The main plastic raw materials for home appliance manufacturing.

Steel is an indispensable raw material in the manufacture of home appliances. It is understood that steel for home appliances is mainly used for the outer casing (side panels, panels), cabinets, liners, and motors. Household appliances steel accounts for about 20% of home appliance manufacturing materials, of which refrigerators account for 20%, drum washing machines account for 30%, turbine washing machines account for 11%, and microwave ovens account for 30%.

The sharp rise in steel prices in 2016 has brought cost pressure on the procurement of raw materials in the home appliance industry. Yigang Online is a steel e-commerce platform that provides one-stop steel trading services for terminal manufacturing enterprises. At present, more than 60% of the platform resources are supplied to end users, such as fastener manufacturing enterprises, welded pipe manufacturing enterprises, and shelf manufacturing enterprises. There are also users in the home appliance industry. According to Liu Yonggang, vice president of Yigang Online, “The most used in the home appliance industry are cold-rolled sheets and galvanized sheets with cold-rolled sheets as the original sheets. The prices of these two steel products have risen sharply in 2016. Late December The price of cold-rolled sheet is about 4,800 yuan / ton, which is a sharp increase of nearly 85% compared with 2,600 yuan / ton in the same period of 2015; the price of galvanized sheet is currently more than 4,000 at nearly 5,000 yuan / ton, which is also sharper than the same period in 2015. Rising more than 90%, such a large increase, the home appliance industry is unbearable, and will inevitably choose to pass the pressure of rising prices to consumers."

In fact, the sharp rise in steel prices in 2016 is also the result of a combination of factors, such as industrial de-capacity, property market destocking, and steel prices all the way; such as logistics freight rates, especially the “most strict treatment super order” issued, Steel logistics costs have risen sharply; and, for example, the futures prices of red fires. However, the main reason for the rise in steel prices is still based on the soaring raw materials. The prices of iron ore and coal for the two major raw materials for steelmaking have almost doubled, and the production costs of steel enterprises have also been pushed up. The ex-factory price has also been raised. Therefore, steel prices staged a round of retaliatory gains in 2016. For example, rebar has risen from 1,600 yuan/ton in 2015 to 3,100 yuan/ton at the end of 2016, and the heat volume has also increased from 1,800 yuan/ton to around 3,700-3,800 yuan/ton in 2016, which has doubled.

According to industry analysts, in addition to rising raw materials, the Ministry of Transportation issued a limit, which greatly increased the logistics cost of home appliances. In addition, the central environmental protection inspector patrolled the ground and investigated a number of home appliance parts companies suspected of environmental protection. Including casting, packaging carton factories, electroplating plants, etc., making the supply of upstream accessories tight, but also lead to price increases.

People can buy home appliances as early as possible

The price increase of home appliances has become an irreversible trend. Both e-commerce platforms and offline stores have gradually begun to respond. Perhaps after the price promotion, we can enjoy the price before the price increase; even if the price does not rise, the promotion will also be It will drop, so if there is a demand for home appliances in the near future, now is the last chance.