According to a CCTV financial report, since August last year, the price of wood has been rising, and many downstream companies that have a large demand for wood are miserable. The topic of #Timber price increase, furniture factory forced to close# also rushed into the hot search on Weibo, causing heated discussions. Some netizens pointed out: "The price hike has begun to transition from bulk raw materials to consumer products."

The reporter learned from the person in charge of the Nature Home Forestry Group that the price of commonly used wood has increased by 30%-50% on average in recent times. Although Nature has its own forest farms in South America, Africa and other places, shipping and customs clearance costs have skyrocketed. It also has a greater impact on costs. The person in charge revealed that during the blockage of the Suez Canal, over 100 containers were involved in nature.

It's not just wood that raises prices

"In addition to wood, glass, steel, copper, and PVC materials are all skyrocketing." The home improvement industry has been collecting materials for nearly 20 years. Leng Jinsong, executive vice president of Huaxun Taste Decoration Group, said that material prices fluctuate every year, but never appear the situation that is like this year's general rise.

"The current copper price is about 65,000 yuan/ton, and it exceeded 70,000 yuan/ton in March, and it was only about 34,000 yuan per ton in the same period last year." Leng Jinsong added that PVC pipe companies have issued five price increase letters this year.

Public information shows that taking Shanghai Copper 2105 and Shanghai Aluminum 2105 as examples, the closing prices as of April 8 were 66,850 yuan/ton and 17,525 yuan/ton. In October last year, the prices were about 52,000 yuan/ton and 14,000 yuan/ton respectively. 

According to Leng Jinsong, the application of copper materials in home decoration is mainly copper core wires, which are commonly referred to as wires. PVC materials mainly involve pipes and finishes, while steel materials are mainly ceiling keels. With only the copper core wire material, a house of about 90 square meters will cost about 5,000 yuan, an increase of 20% over the same period last year.

Leng Jinsong told reporters that large-scale home improvement companies have stable suppliers and sources of goods, and they have strong resistance to pressure. However, home improvement companies with smaller volumes may not be able to get the goods.

Qiu Lianghua, the person in charge of a small decoration engineering company, told reporters that taking his long-term cooperative supplier as an example, from December last year to April this year, the price of 1.5 square copper core wire suppliers commonly used in home improvement projects rose from 120 yuan to 180 yuan; the price of aluminum alloy windows rose from 250 yuan/square to 360 yuan/square; the 12mm thickness glass rose from 100 yuan/square to 130 yuan/square.

Qiu Lianghua said that due to unstable material prices, some suppliers even stopped taking orders, which had a great impact on project delivery and operations. On April 7, Foshan Nanhai Donglong Liguan Decoration Materials Co., Ltd. issued a “unit price notification letter”. The company clearly stated: “Since February, due to the continuous increase in the price of raw materials and steel, the supply is tight, resulting in unpredictable costs. From April 8th, the unit price of light steel keel shall be based on the same day, and the previous order agreement will be executed at the order agreement price, and no new orders will be accepted."

Is it still far from the terminal price increase?

The cost of raw materials continues to rise. Will home furnishing manufacturers and home improvement companies pass on the increase to consumer terminals?

On April 8, the reporter visited a number of home building materials stores such as Guangzhou Homekoo, Sogal, Oppein Home Furnishing, Holike, Kefan Customization, TATA Wooden Doors, Powerdekor Flooring, etc. According to the clerk, they have not received it so far. The official price increase of the brand is official document, and the price of the terminal product has not changed significantly compared with the previous year.

Relevant departments of Homekoo, Sogal, and Holike also told reporters that although the cost continues to rise, the terminal product has not yet risen in price.

But the TATA wooden store clerk told reporters that although the price has not changed now, there is internal news that some products may be adjusted in price.

"The price increase will not be now. At present, many brands in the industry have been vaccinated with dealers, but whether the top brand will increase the price or not, everyone is still watching the price trend of materials." Wang Biao, President of Kefan Custom Home According to the reporter's analysis, domestic wood-based panels are mostly used in mainstream custom home furnishings. Although domestic wood growth is not exaggerated by imported wood, coupled with the overall price increase of glass, hardware and other materials, the production cost of custom home furnishings may rise by 10%-20%.

"If this situation continues, it is expected that all major customized brands will usher in a comprehensive price increase in May, and the terminal increase will not be less than 5%." Wang Biao said.