Who is the real murderer in price increase in the building materials market?

A building materials buyer introduced that price changes in the building materials market are a combination of various factors. Because this time of year, due to the influence of the international futures market and domestic manufacturers sales plan, the building materials market will have a certain degree of fluctuation, called "corner city" in the line. However, in general, with the automatic adjustment of the market, such imbalances in prices and supply and demand will quickly return to normal.
However, this year and the past, there are other reasons for price fluctuations. First, many high-standard raw materials in China rely on imports. Affected by foreign anti-dumping policies, China's exports of retail goods have been jointly impacted by foreign products. Dozens of domestic well-known enterprises have been listed on foreign anti-dumping lists, while many foreign importers With increasing raw material prices, domestic building material producers have had no choice but to raise the ex-factory price of building materials in view of the increase in production costs.
Another influencing factor is the recent high oil prices. The most direct consequence of soaring oil prices is rising transportation costs. Since building materials are different from other products, from the collection of raw materials to the final products are often not carried out in the same place. Therefore, the increase in transportation costs has contributed to the increase in the price of building materials.
The price increase did not affect the entire industry, said the industry, construction of the three major raw materials, a substantial price increase, the chain led to the decorative materials industry prices rose. Recently, the price of decoration materials has risen by more than 10%. Experts predict that within the next two to three months, the price increase of building materials will increase to 20%-30%. According to the survey, the largest increase in cement prices, rose more than 50%; sheet metal, hardware building materials rose also ranked in the forefront of decoration materials rose; paint, wires, lines, etc. have also increased in different ranges; and most of the decorative building materials such as wall tiles, Floor tiles, doors, cabinets, sanitary ware and other prices are fairly stable.
Mr. Shen, who is currently undergoing renovations, said that due to the increase in the price of wood raw materials, the 50,000 yuan in wood and home-related decoration costs had suddenly risen to 56,000 yuan, which was more than 10% of the original price. Those who have done home decoration know that in the renovation, wood is the most used one, accounting for almost 1/3 of the entire home renovation cost, and even nearly 1/2 of the cost. The rise in timber price in the construction market, and the chain has led to a rise in the price of wood used for home decoration. It is obviously more than a small expenditure for the family.
Hardware in home renovations is also the bulk of expenses. Due to the rise in steel prices, metal struts used in home renovations such as locks, hinges, metal handles, faucets, and clothes are also subject to price increases. The essential glass in the home decoration has also been added to this price increase. Because of the difference in texture specifications, the proportion of price increases is quite large, ranging from a few yuan to tens of yuan.
In view of the recent increase in prices of basic building materials including cement, wood-based panels, flooring, paint, and hardware, the price increase of building materials will cause the decoration company's profits to drop by an average of 5%-8%. In order to maintain the original profit, some decoration companies in Shanghai have raised the price.
In response to price increases, there are still two months of inventory in the face of such an uptrend in building materials. How many families that have already got a house or handed in their homes should respond? A person in charge of building materials and supermarkets told reporters in an interview that although building material suppliers have increased the wholesale price at the source, hypermarkets have not raised the price of building materials in the market for the time being, in order not to cause panic among consumers and to reduce their profits. The plan basically maintains the original sales price.
However, experts have analyzed that the construction of a supermarket at a discount price can only last for a maximum of three months, but it has now passed one month. Because the hypermarket’s move is aimed at safeguarding corporate image, I am afraid it will not last long in the face of such a severe situation. Because the production cycle of building materials is about 3 months or so, waiting for the goods sold in the original cycle to sell out, supermarkets are likely to follow up prices by about 20% -30%. In other words, families that are under renovation or are going to refurbish their homes should take advantage of this "last chance" and take appropriate actions at the right time. It will be too late for the new cycle to come.

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