Floor prices have risen

In the off-season renovation, the floor price hasn't dropped a bit. On the contrary, due to the advent of the autumn decoration season, some varieties of solid wood flooring have experienced a sustained and vigorous price increase. The domestic flooring market shrouded with a tense atmosphere. The industry has also conducted extensive discussions. What actually dominated the price controversy? Is there any artificial factor that is difficult to say behind this? He and his observers visited the major building materials markets in Shanghai and interviewed Li Honggang, secretary-general of the Shanghai Building Materials Industry Association. He said that the flooring market is absolutely free.
Phenomenon: Four kinds of floor prices continue to rise The price hikes in solid wood flooring have been seen since early 2005. Since March of this year, the prices of solid wood floors on the market have risen again by more than 30%. This price increase was last year. A continuation of the price increase.

Most of the raw materials for solid wood flooring in China are imported from Southeast Asia and South America. The former accounted for more than half. After the tsunami at the end of last year, the reconstruction of Indonesia, Malaysia and other countries required a large amount of wood, the supply of plates was tight, and the international oil price continued to rise, leading to marine shipping. The price of wood has risen sharply, and the room for the price increase of solid wood flooring is still quite large. The shortage of raw materials is naturally the main reason. At the same time, because the spring and autumn seasons are the decoration season, the demand for flooring is greater than ever. The rise in prices for solid wood flooring is a foregone conclusion, and has had a huge impact on the entire flooring industry.
Although the increase in solid wood flooring is not obvious, but with the overall price of the flooring industry has risen all the way up. The Ministry of Finance and the State Administration of Taxation have just issued a “notice” confirming that solid wood composite flooring also belongs to solid wood flooring. A 5% consumption tax should be levied on the excise tax levy introduced in the first half of this year. Although last year, the price of solid wood flooring was basically stable, there was no fluctuation, but with the increase of costs, it was imperative for manufacturers to increase their prices. The price increase of solid wood flooring is also in full swing and has to be made.
The price of laminate flooring has always been stable. However, prices have risen significantly since July and August of this year. Prices of many brands have risen from RMB 3 to RMB 8 per square meter. For the original price more concentrated in 60 yuan / square meter -180 yuan / square meter of laminate flooring, this rising trend is surprising. According to the relevant person in charge of the Shanghai Building Materials Industry Association, the accumulated increase in the floor has exceeded 15% so far.
Bamboo flooring is a unique flooring product in China. Due to its natural material and unique appearance, it has become very popular in the European and American markets. However, the popularity and use of bamboo flooring in the domestic market is relatively low, and the bamboo flooring market has not arrived in the spring. The overall supply of raw materials is in short supply, and it is also more difficult to maintain costs.
Rumor: There is no dark hand in the floor market for the rising tide of prices on the market. Some people have recently thrown up such a remark that there is a shortage of raw materials for the “invisible hand”. Starting from September this year, they will take the initiative from a certain place in Jiangsu every day. Competitors across the country sent price information that they were supposed to keep secret, and actively combined with other base material vendors to raise the price of the substrate collectively, causing price fluctuations in the entire industry.
This kind of speech has some mystical legendary colors. It has gradually been accepted and disseminated by many people, making the originally turbulent flooring market even more prosaic. His observers consulted Li Honggang, secretary-general of the Shanghai Construction Materials Industry Association, on this issue. He clearly stated that there is no black hand and all phenomena should be attributed to market factors. Secretary-General Li believes that it is the market's own operating rules that lead to price fluctuations.
Most of the floor materials in China are imported from abroad. With the global shortage of timber resources, there has been a situation that the supply of substrates is in short supply. Although many big brands have the idea of ​​stabilizing prices, protecting market awareness and social responsibility, they are forced to follow the price pressure. The head of Hongnai Floor said to the observers of the family that so far this year the brand's laminate flooring has not adjusted prices, but it does not rule out the possibility of appropriate adjustments when the market pressure is too high. “According to the situation that I have recently learned from the factory, the cost of our 8mm specification floor is about 3-5 yuan per square meter, and the cost of the 12mm specification floor is also rising at 6-8 yuan per square meter.”
As we all know, many wood raw materials in China rely mainly on imports from countries in South America, Africa, and Southeast Asia. Brazil, Indonesia, Myanmar, and other countries exporting raw materials for solid wood flooring have started to ban or restrict production and exports because of the need and pressure of environmental protection. Wood, making the supply of raw materials more and more nervous, leading to the upward trend in prices. It can be seen that the shortage of raw materials is closely related to the increasing awareness of environmental protection in the global scope. When the problem of survival becomes increasingly severe, people begin to take practical actions to make up for environmental negligence.
At the same time, the rise in international oil prices has led to an increase in freight rates for timber, as well as factors such as the increase in the price of marine shipping and the overloading of domestic governance. In addition, tariff adjustments and general price increases have also contributed to the increase in prices of solid wood flooring.
It can be seen that the main factor that restricts the supply of floor materials is still the objective market conditions. It is not simply a result of human effort. It is difficult for an individual or a single company to shake up the entire industry. The "black hand" that is circulated nowadays can only show that people's hearts are the by-products of floor prices.
Forecast: There is still a $20 upside at the end of the year. In general, the state's policy of levying consumption tax on the wood flooring industry is actually a "guidance signal" for resource utilization. With the increasing shortage of timber resources, the increase in floor prices will, to a certain extent, contribute to the adjustment and optimization of the industrial structure of the relevant industries. It will also result in some kinds of floors (especially solid wood floors) becoming a small part of the “rich class”. "Consumables.
A flooring dealer said: “After rising prices, sales volume has dropped by 30% year-on-year.” Insiders analyzed that after the “Eleventh” floor, the floor price was adjusted. By the end of 2006, solid wood flooring had around RMB 20 per square meter. Rising space.
We will not give up the natural qualities of wooden floors, but the predictable fact in the future is that the consumer groups of solid wood flooring will continue to shrink. The price of the floor will be higher and higher, but as long as it is within our predictable range, it is not unreasonable. The market has its own rules of operation. Any speculation that it cannot solve the problem will only increase the psychological panic. We should take a calm look at the problem and adopt positive and effective countermeasures, such as strengthening the market influence of composite flooring and bamboo flooring, and carry out multi-faceted strategic marketing to replace the need for a portion of solid wood flooring within a suitable range. Faced with a big reshuffle in the industry, only by understanding the status quo can we make a difference.

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