2011 paint "price war" full line of follow-through advantage is a cloud?

The price hikes in the building materials industry said that from last year until this year, the home industry has brewed the collective price increase. Is price hikes forced by companies because of cost pressure, or is it an opportunity to make profits? Do consumers buy home prices? How do companies digest the negative factors caused by price increases? There have been many voices in the paint market.

A notice of price increases for building materials has been issued, and some stocks have been implemented since December last year. It is understood that because the raw materials for paint coatings are petrochemical products, the impact of international crude oil price fluctuations is still quite large.

It is understood that because the raw materials for paint coatings are petrochemical products, they are greatly affected by fluctuations in international crude oil prices. Recently, the prices of major raw materials such as chemical solvents, titanium dioxide, tung oil, and rosin have increased significantly. All brands of paints and coatings have all increased in price.

Consumer demand stimulates prices

Due to the stimulation of consumer demand and the guidance of building materials to the countryside, the building materials industry has begun to increase its commodity prices in the raw materials market since the first half of the year, so that consumers and paint companies continue to speculate about paint prices. Judging market conditions and trends, but ultimately there is no satisfactory answer.

For example, previous market surveys showed that the prices of most building materials were “not moving”, and some manufacturers still quietly lowered the prices of products in the form of discount promotions in the fall season. But it seems that the market repercussions are not as good as expected.

Needless to say, the price of the product is certainly very sensitive to the consumer, so it is also very sensitive to the price increase. The relevant person in charge of a number of building materials supermarkets has denied it.

Today's building materials products are in order to meet the needs of the greater part of people, so the speed of product replacement is also very fast. The old, outdated products will surely have a certain price drop, and they will eventually be eliminated by consumers. With the introduction of new products, prices may increase. After two months of brewing, the new wave of price rises in the paint industry has finally burst, which has become a major incentive for price increases.

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Looking back along the route of rising prices, we can discover several features: First, price increases have spread from small commodities to large commodities. From the raw materials to the lower terminals, the “domino effect” of price increases is evolving. Titanium dioxide rose, the solvent followed up, followed by pigments, resins, etc. Finally, the end-to-end paint manufacturer was also brewing and rushing to raise prices.

In the paint industry distribution point, according to the manufacturer's price adjustment notice, all engineering coatings have been sold at adjusted new prices since December 13 last year. A barrel of paint with 20 kg of external wall paint, the current price of 743 yuan, adjusted to 817 yuan, up 10%, this is the latest market price, consumers have you noticed?

The price of decoration building materials rises collectively. The price of paint has been relatively clear, the industry introduced the reasons for the increase in prices of gasoline, vegetable oil prices, increased material freight costs; and other solid wood flooring, laminate flooring purchase prices than before the Spring Festival rose by about 5%, It is also due to the tight transport and raw material supply.