The price of raw materials keeps rising, and the price of Chinese appliances is increased by up to 30%. Pictured, a large store in Beijing sells appliances made in China.
In April, central air conditioners, heat pumps, wall-hung furnaces and other products produced throughout China have increased in price, the largest increase of up to 30%. The mainland media reported that this “price hike” is unprecedented in terms of both the size and scale of the increase. Radio Free Asia reporter Qiao Long reports.
Since April 1, there has been a wave of price increases in various industries in China, whether for copper, stainless steel, aluminum materials, or circuit boards, transportation costs, etc., all of which have increased by more than 30%. According to Chinese media reports, as a number of companies’ price adjustment letters are implemented since April 1, making April a well-deserved climax of the “price hike”! Both the scale of price increases or price increases can be described as unprecedented.
GREE central air conditioning April 1 from the price of the entire product line rose 5%. (Network pictures)
Climate warming nearly 90% of the HVAC prices are still up
Dozens of air conditioning, heat pump companies, caused by the price increase in raw materials, 87% of the HVAC companies have increased prices. Increases of 5% to 30%, starting April 1, the head of the air conditioning brand increases ranging from 4% to 11%. Air conditioning Hisense Hitachi, Anhui Gree issued a price increase notice letter on March 8, a 5% price increase; McVeigh product price increase of 5% to 11%; the United States air conditioning increase of 6% to 15%; April, wall-hung boilers with copper, aluminum, steel, plastic, paper boxes and other raw material prices and energy prices rose simultaneously, in addition to heat source products, air disks, pumps, motors, two ware, compressors, etc. have long been the whole line of price increases.
Tangshan Iron and Steel Group engineer Song Yang said in an interview with this station on Tuesday (April 6) that there are three main reasons for this wave of industrial product price increases, namely, companies do not meet environmental requirements and are restricted in production, chip shortages and increased currency issuance. Among them, he said, is the shortage of chips: “The shortage of chips does not seem to be a Chinese one, companies all over the world are short of supply, the United States previously snowed heavily and delayed production, and Samsung in South Korea had a big accident, so there is a shortage all over the world.”
Song Yang said steel has risen across the board, citing the price of rebar, the most representative rebar for construction, as an example, from RMB 1,680 per ton in the third quarter of 2015 to RMB 5,000 now.
Left: More than 80% of companies have increased the price of their products. Right: Companies have been giving one price increase notice after another. (Web Photo)
Restrictions on foreign imports affect domestic prices
Hebei materials engineering scholar Xu Qiang told reporters that the central air conditioning and heat pump prices rose sharply, not just for the above reasons: “Another major export restrictions lead to a shortage of foreign exchange reserves, a large number of sources of imported components, the price will certainly rise. Now mainly the price of industrial products rose. Now the price increase has been the general trend. Air source heat pump in many domestic exchange materials are imported, domestic standards can not be met. And the more difficult to import, the price is certainly expensive. The heat exchange of air conditioners is also dominated by imports, domestic can not reach the heat exchange rate.”
Shandong University financial scholar commander believes that from materials to products across the board, is not uncommon: “This round of raw material prices rise for the HVAC product prices rise the impact of the large, can be said to be very surprising. HVAC industry demand is the largest when there was an upward adjustment to prices. 2021, China similar situation, product prices are difficult to retrace in the short term.”
A heat pump company in Guangdong reportedly raised prices by 30 percent last December. In January this year, the impact of sanctions imposed by the United States on China’s high-tech. Mainland China chip supply continues to be tight, more and more semiconductor companies to join the ranks of price increases. Among them, the chip price increase of 30%.
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