Why are China furniture prices rising in 2017?

Along with the history under the most severe storm swept through environmental regulation, furniture, building materials industry of many small plants shut down, even a number of large and medium-sized furniture, building materials enterprises also failed to escape their production or is the fate of the reorganization of the.Environmental protection storm

Look at the current situation in the small factory near Chengdu: you can either shut down or shut down.Customers’ orders are generally delayed, and it’s becoming the norm to buy less than you want.At the same time, the price of furniture building materials rose across the board.

Since last winter, the national environmental crackdown began to shuffle, showing the result of the household building materials industry influence, the outer packing carton, inner packing foam and other plastic prices soaring singing overnight, accessories prices as rising raw material prices crazy also started chanting, even the freight after the new road rules, sea land prices are started.

According to market analysis, the price of home building materials increased by more than 3 times in the period of November 2016 to March 2017, and even some enterprises have sent eight price increases continuously. What’s the matter?

The increase in raw materials is the main reason

Material markets, wood, hardware, cartons, sponges, cloth…The price is like mad cow, go crazy!At present, the market is rising, all products have been appreciated. Some of them have been appreciated for the second time.

The timber rises, the hardware rises, the sponge rises, the cloth rises…

Only the workers and the boss of the furniture industry — the purse didn’t go up!

Why is that?Because it’s basically a holiday!

markup

By all kinds of material, prices continue to rise, factors, such as higher logistics costs and labor costs continue to increase, especially the first rise in the production chain of basic raw materials, manufacturing enterprises can’t afford.

Wood, paint and other furniture production of the main raw materials price increases, resulting in higher costs!Countries such as the United States, Russia, and Malaysia have announced policies to reduce timber exports.The price of lumber has risen by 15% to 20% this year.

Burma’s ban on log export in three years ago, has launched the “JinFaLing” last year, the cutting limit, at the beginning of the year for “illegal logging” blow blocked many timber smuggling, announced in May this year Burma forestry industry association to protect the forest ecological environment, Myanmar will stop the export of wood and wood products, step by step, fuelwood tensions.

Banned logging

The price of glass, aluminum, stainless steel, plastic, and packaging will be appreciated. Can the cost of production go up?Since June 23, the main contract for glass futures has risen by about 12.81 percent since June 23.The recent rise of raw materials in the upper reaches of raw materials has strongly supported the price of glass.

In addition, the price of quartz sand in the shape area has doubled to 190 yuan/ton, and the cost of glass has risen by about 100 yuan/ton accordingly.

After the raw material went crazy, the second production chain of the carton industry began to rally!After the raw material rose, the intermediate industry began to rally.In July, the price of a whiteboard paper in Zhejiang province was hit by a price increase, and the paper mill made five rounds of price increases, with a cumulative gain of 460 yuan/ton.This month in east China, south China, central China, southwest are price increases, price increase so far team has expanded to 44 paper mills, paper kind of whiteboard paper, corrugated paper and corrugated board paper, cattle paperboard, grey board, single gains ranging from 50-300 yuan/ton.

Affected by the environmental storm, the overall operating environment of the household changes

Stainless steel shutdown, polishing, and closing grinding or sanding, hardware manufacturing shutdowns, sanitary ware shuttered…Anyway, it is related to home building materials processing, the procedures are not perfect and incomplete enterprises, all shut down.Influenced by environmental storms, household overall business environment change, enterprises realize not the old price war, so raw material prices, enterprises have to cost accounting, pricing again.

After a spate of raw material prices soared, environmental crackdown, road new rules and artificial cost increase, let already meager profit of manufacturer in distress situation, originally profit as thin as paper contract batch collapse, it looks good for small and medium-sized enterprises, the environmental crackdown after the closing of killing hundreds of thousands.

Price is not only a household industry, other industries prices also unavoidable, many industry experts said the price is in the backward production capacity, reversed transmission improve product quality, in the walk route of independent research and development, it is only just beginning.

Furniture of solid wood, hardware, plank and so on raw material price rises, take lumber for example, formerly was 2900 yuan/square, now rises to 3300 yuan/square even above.In addition, the sponge is up 70 percent.

The price has not moved for half a year, and now the price is fluctuating and rising every day.Recently, the major disaster area of raw materials – carton area, now often one price, afternoon one price, and money can’t buy!Businesses are having a big impact.

Whether the price of furniture products will rise in the coming months, many experts and industry insiders say that price increases are inevitable due to the constraints of raw materials and other factors.

2017-10-19T09:26:36+00:00

About the Author:

Jason Liao is the founder of Riwick.com. He is on fire for global trading and small business sourcing in China. With 4 years of global trading experience, he always devotes himself to satisfy needs of customers. Please leave your comment if you have any question, we all love to answer for you.

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