The tide of price increases for ceramic tiles is rising again and again. As the prices of natural gas and coal continue to soar (see for details: Ceramic factories are "mad"! Gas prices in Guangdong, Jiangxi, and Fujian are approaching the 5 yuan/m³ mark)...
Recently, a number of ceramic companies in Guangxi, Guangdong, Jiangxi, Fujian, Henan and other places have once again raised prices due to rising operating costs and operating pressure.
"Ceramic Information" found that this round of price increases are mainly for conventional products such as porcelain tiles and antique bricks, and the increases are mostly 0.1-0.3 yuan/piece. However, even so, the sales managers of many ceramic companies said, "No Raising the price can only mean selling at a loss, and raising the price is actually just to ensure that you don’t lose money.”
Ceramic enterprises in Guangxi, Guangdong, Jiangxi, Henan, Fujian and other areas
Concentrated price increase again
Recently, ceramic companies in prolific production areas have once again raised prices intensively.
Among them, following a round of concentrated price increases by ceramic companies in Guangxi in early August, starting from August 24, many ceramic companies issued price increase notices again: due to rising prices of raw materials such as coal, cartons, chemicals, and labor costs. The continuous increase has led to a sharp increase in production costs and huge operating pressure. Therefore, the prices of ceramic tiles of some specifications have been raised since the beginning of September.
Some insiders said, “In early August, Guangxi ceramics companies issued price increase notices due to power cuts and production shutdowns, raw material price increases and other factors. Not long after that, another wave of price increases came. , Some factories have even issued several price increase letters. "Although the price increase each time is not high, from the end of last year to now, the cumulative increase of some specifications of ceramic tiles has exceeded 10%.
Not only Guangxi, but also many ceramic companies in Fujian, Jiangxi, Guangdong, Henan and other places have issued price increase notices.
Some Jiangxi ceramic enterprises stated that due to the current rising raw materials (coal, zirconium silicate, cartons, hardware and personnel wages, etc.) and the company's operating costs, in order to ensure the company's healthy operation and stable product quality, it was decided to start from September The prices of some antique tiles and small floor tiles will be raised starting from the 1st.
At the same time, a ceramics company in Fujian said that due to the particularity of ceramic tile production, which is greatly affected by the fluctuation of bulk commodities, the production cost has been rising, and the price of raw materials is expected to continue to rise in the second half of the year, so it has raised the price of some specifications of ceramic tiles, and this This rise is just the beginning, and there may be more rises in the future.
Due to high cost pressure, a Henan ceramics company has raised the prices of its entire range of interior wall tile products since August 31.
Taken together, the main reason for this new round of price increases is that "the increase in raw material prices has led to high production costs and rising business operating costs."
The prices of porcelain tiles and antique bricks have generally increased
Some products have increased by RMB 1.2/piece
"Ceramic Information" found that in this round of price increases, most ceramic companies have mainly raised the prices of porcelain tiles and antique bricks.
According to the price adjustment notice issued by ceramic companies, most ceramic companies have generally increased the prices of 300×600mm and 400×800mm ceramic tiles by 0.1 yuan/piece. In addition, for products of the same specifications, there are also ceramic companies that have raised their prices respectively. 0.2 yuan/piece, 0.3 yuan/piece.
"After years of development, porcelain tiles have long been a low-profit product. The price of raw materials has continued to rise this year, and its profit margins have continued to shrink. If the price does not increase, it can only be sold at a loss. For other products, rising costs may only compress part of the profits. , but for porcelain tiles, the price increase is actually just to ensure that there is no loss," said the sales manager of a ceramics company in Foshan, Guangdong. Since the beginning of this year, the prices of 300×600mm and 400×800mm porcelain tiles have increased many times, but even so, sales have continued. The situation is still not ideal.
In addition to porcelain tiles, many ceramic companies have also raised the prices of antique tiles this time.
Among them, many ceramic companies in Jiangxi increased the prices of 600×600mm antique bricks by 0.2 yuan/piece, 800×800mm antique bricks by 0.6 yuan/piece, and 600×1200mm antique bricks by 0.5 yuan/piece. Many ceramic companies in Guangxi have raised the prices of 600×600mm antique bricks by 0.2 yuan/piece and 800×800mm antique bricks by 0.3 yuan/piece. The above price adjustments will be implemented from September 1st.
"Cumulatively, some manufacturers' 600×600mm antique bricks have increased by 0.5 yuan/piece, and 800×800mm antique bricks have increased by 1.2 yuan/piece. Moreover, due to cost pressures from all aspects, many factories have stopped production of part of their production lines. For example, there is a ceramics factory in Guangxi, and one of its two antique brick lines has stopped.”
Order, order!
Some ceramic companies have been liquidated
“Many ceramic tile production lines that mainly focus on conventional products have been discontinued in recent times. The fundamental reason is that they cannot be sold. Although prices have been raised several times, many factories still have no orders, and it is difficult to actually increase them. And now Many factories have already sold out," said the sales person in charge of a Guangdong ceramic enterprise.
Some ceramic tile wholesalers also said that ceramic tile price increases have continued for several rounds, but many factories still have no orders.
In the view of many interviewees, on the one hand, the costs of fuel, chemical raw materials and other materials have been rising this year. At the same time, sales have been sluggish. Conventional low-profit products such as porcelain tiles and antique bricks are very difficult to deal with in this situation. It is difficult to support the normal operation of the enterprise.
At the same time, not only is the domestic market sales situation experiencing an off-season, but the export situation is also not optimistic. Sea freight has skyrocketed, and it is difficult to find a container, making it even more difficult to export ceramic tiles. Some ceramic companies also said frankly: "Production costs have risen too sharply this year. Even if prices have been increased multiple times, it has only slightly alleviated the cost pressure."
(Article reproduced from Ceramic Information)
