Sanitary ware industry is facing major change, the price of product rise to inevitable

- Dec 23, 2017 -

In 2017, the "tide of price hikes" in the sanitary ware industry can be described as a very big change affecting the entire industry. In addition to the every sanitary ware manufacturers suffering miserably, and even affecting the distributors. There are a number of sanitary ware agents said that in recent months, many brands have a phenomenon on out of stock when the product on the factory, the reasons is mostly related to the environment, cartons and stainless steel is under supply, so furniture, sanitary ware, kitchen industry are hard to return to the previous price.


A number of kitchen & bathroom manufacturers are closed because they are not reached the standard of environmental protection


Mr. Li, a sanitary ware brand agent in Hubei province, is very anxious recently. The last two months, a sanitary ware brand which Mr. Li agent is frequently out of stock, or even appeared having no goods phenomenon. The reason is that the state to carry out environmental protection work, a large number of illegal operations and environmental pollution caused by the furniture factory, sanitary ware factory, hardware factory, production suspension!


History of the most stringent environmental protection tide approaching, many domestic enterprises escape spared!


Relevant statistics show that as of December 27, Guangdong has been around for 4205 companies order the rectification, the filing penalties enterprise 2341, to be punished amount 74.022 million Yuan. Stainless steel shut down, polished shut down, matte shut down,  the hardware manufacturing shut down ... ... Anyway, related to the processing of household, the procedure is not perfect, check unqualified, all shut down.


Cartons not only price increases, but also a serious shortage of stock


In fact, since the country implemented supply-side reform and stepped up environmental governance, the paper industry has been facing problems such as stock outs. In 2015, national elimination of backward and excess paper production capacity of 1.67 million tons, among them, Guangdong Province shut down 20 paper mills, out of paper production capacity up to 796,000 tons, ranked first in the country.


Packaging "innocent" was reported, the carton industry in case of "special care".


By September this year, due to the previous inventory consumption and environmental regulation, paper serious shortage of supply. In addition, at the G20 summit in September this year, the state formulated a policy of forcing paper mills above designated size in the country, especially some large-scale listed companies forced cut 40% or half of the policy, exacerbated the shortage of cardboard boxes.


By the end of October, some paper mills could not even meet the existing order volume. Nearly 100 cardboard factories in Dongguan, Huizhou, Ma'anshan, Suqian and Nantong all over the country issued a notice in the near future to stop receiving orders or price increases for corrugated paper.


Industry is facing the reshuffle is price increase inevitable?


For crazy rising sanitary ware product prices, a dealer said that near the year off, the manufacturer issued a notice of price increases, for all sanitary ware products in 2017 ex-factory price officially rose 10%. Under the influence of multiple factors, this year's sanitary ware product prices rose ahead of schedule, causing a lot of market panic. However, how to correctly view the sanitary ware product prices, out of stock phenomenon, it is worth every relevant people thinking.

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