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The price of floor heating pipes is hot, and brand floor heating pipes have gradually become the mainstream
The price of floor heating pipes is hot, and brand floor heating pipes have gradually become the mainstream
China Building Materials Network Release time: 2010-6-23 Hits: 215
Recently, the author consulted the sales persons in charge of some floor heating pipe production companies. Everyone agreed that the price increase of floor heating pipes is inevitable, but there is a slight difference in the specific price increases. As far as PE-Xa pipes are concerned, some companies’ ex-factory prices are now adjusted to 2.30 yuan per meter, some are 2.25 yuan per meter, and some have risen to 2.38 yuan per meter. Although the price has risen, the profit margin of the enterprise is still meager, which is mainly caused by the following reasons.
Raw material prices are rising rapidly
According to the classification of the upstream, midstream and downstream of the floor heating industry chain, the pipe raw material suppliers such as South Korea’s LG Chemical, Dow Chemical and Hunan Petrochemical are upstream companies, while the pipe, staple, water separator, thermostat and other material manufacturers belong to Midstream companies and floor heating construction companies are in the downstream of the industry chain.
As the prices of various raw materials have been rising in 2010, the raw materials of floor heating pipes have also begun to increase. The blank of domestic raw materials in this respect objectively causes foreign raw material companies to have a certain degree of monopoly, and they can naturally perform quite strong in the floor heating industry chain. Not only raw materials, some foreign companies producing pipes, production machinery and cement foaming machines also have similar monopolies to varying degrees.
On the basis of a large increase in the price of raw materials, it is difficult for the floor heating industry material manufacturers to do it. If the company does not raise the price, it can only support it with low profits, or even lose money.
Production costs continue to increase
The promulgation of the new "Labor Contract Law" has put an unprecedented test on many small and medium enterprises. In accordance with past practice, the proportion of investment in employee welfare by enterprises is very small, and even the vast majority of workshop-type enterprises do not provide employees with pension insurance at all, let alone "five social insurance and one housing fund". However, the "Labor Contract Law" promulgated on January 1, 2008 put forward strict requirements on this, and it rose to the height of the law. This makes business owners have to face the huge investment in improving employee benefits. In addition, electricity, water, and worker wages are also rising, and the production costs of enterprises have soared. The only way to solve these cost factors is to increase product prices. As for those small pipe manufacturers that operate at low prices, it will be difficult to maintain operations in the future.
Article source: China Building Materials Network www.bmlink.com
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