Industry structure needs to adjust three major factors to promote plate prices general rise

Event: Several large plate brands have released price adjustments and ** prices have become a foregone conclusion.

In late April, Jilin Forest Industry's "Lushuihe" particleboard announced that it would raise the price of its plates by about RMB 5 per square meter. Taking a 1220×2440×16mm Lushuihe particle board as an example, the final result is an increase of 15 yuan per board, an increase of about 15-20%. This increase is quite a lot.

Shortly afterwards, Austrian EGGER domestic agency companies stated that there may be a price adjustment plan in the near future. As early as a year ago, at the inventory forum of Sohu Furniture on the cabinet industry, Wu Min, the only general manager of the Shanghai Weijia Economic and Trade Co., Ltd., who was the only Austrian EGGER board in East China, pointed out that the rise and fall in sheet prices was normal. However, due to the financial crisis, the price of sheet metal at that time can be said to be the lowest in several years. The implication is that after the crisis, sheet prices will rise steadily.

In the industry, Kyrgyzstan Wood, which has always won with a good reputation, has begun to adjust its products by about 7%-10%.

These seem to confirm that the rise in sheet metal is inevitable. So what are the reasons for the plate price increase so much? How long will this trend continue? Will it affect its upstream and downstream industries?

Low supply of raw materials is the main reason for the general increase in wood

In the dialogue with some domestic plate-making companies, we learned that one of the main reasons for the increase in plate prices is the increase in the price of raw materials. A plate supplier, who declined to be named, said in an interview that as early as the second half of last year, the supply of logs across the international market was very tight. Not only high-quality logs, but also the prices of the branches, barks and even some of the old timber used for recycling have risen to varying degrees. These will affect downstream suppliers of finished products more or less. In response to our interviews with some home furnishing companies related to the production and processing of wood products, it was also pointed out that, with the hosting of the Copenhagen World Climate Conference, low carbon has become a popular topic in the home furnishing industry in 2010. The more limited timber cuts, the lower timber supply, will inevitably lead to higher prices.

The price adjustment is made up by the difference in prices that fell during the financial crisis.

In addition to the increase in raw material prices led to the general increase in sheet prices, the price difference caused by the price cuts during the financial crisis is also another major reason for the current increase in the price of the sheet metal industry. Wu Min, general manager of Shanghai Weijia Economic and Trade Co., Ltd., said that imported plates are greatly affected by the exchange rate. The financial crisis period is like taking the “roller coaster” exchange rate to put pressure on many sheet companies, and the price cuts may even become the only way to avoid the wind. Now, the international situation is gradually improving. Taking into account the sound development of enterprises and industries, it is imminent to reformulate new price standards. For example, a person in charge of Jilin Forest Industry revealed in an interview with the media that when the financial crisis struck in 2008, companies once reduced the price of their products to the level of 8 years ago in order to avoid production cuts and ensure sales. Although this has, to a certain extent, helped the company win back a steady stream of customer sources and demand, the low price has long been inconsistent with the economic leverage of the current market, virtually putting pressure on production costs, and many companies have emerged "White busy" phenomenon, so the current price increase for the enterprise itself is a last resort but it is also necessary.

The levy, that is, the tax rebate adjustment price increase also reduces the cost pressure on the company

In addition, the national levy tax rebate was returned to the enterprise from 100% in 2009 and changed to 80%, and since the recent period, the increase in the price of coal, electricity, and international crude oil has continuously increased the cost of the productive enterprise. First of all, a 20% reduction in "tax rebates" may reduce the income of some companies by 10 million yuan. Not long ago, after the research team of the National Development and Reform Commission and the Ministry of Finance proposed, in 2012, China’s proposal to introduce a corporate carbon tax will also allow board companies to take precautions to a certain extent. After all, compared with foreign countries, the current domestic prices of forest products are still relatively low. Many forestry workers have a very difficult life. From the perspective of healthy development of the industry and improvement of workers' lives, it is more reasonable to adjust the price to give forestry enterprises more support. Among them.

So whether the plate industry price increase trend is good or bad for the development of the whole industry? Will the related cabinets, furniture, etc. affect the business? When interviewed by Sohu Households, the Forest Industry Industry Association consultant Zhang Lin pointed out that “Over the past decade, due to technological progress, the quality of products in the industry has generally been steadily increasing. However, we cannot but see that due to low-price competition, the total amount of expansion is too high. Fast, due to the low quality of raw materials, quality problems still occur from time to time... Chinese products in the international market will not be able to be 'cheap' as the main appeal, but must be converted to 'wumart' as the fashion. The competition has gone deep into the premium quality of raw materials."

Therefore, from the perspective of breaking away from the “price war” and sublimating the industry, the price hikes will reshuffle the plate industry and even the downstream cabinets and furniture industries, thereby eliminating some inferior plates, furniture manufacturing companies, and small workshop enterprises, and promoting high-quality brand development. It is not a bad thing. The “adjustment of the structure of the artificial board and board species, the development of the building wall market, and the elimination of backward production capacity” is actually a common topic. Since the beginning of last year, the first 200,000 cubic meters of directional structure particleboard introduction line in China has signed in Hubei, and it is expected that the news of trial production in September this year will also allow us to see that the sheet metal industry is gradually entering a new market with technology and competitive strength. . As for how long the price war will last, we will also wait and see how it will change.