, starting on September 22nd, has seen power cuts in many places across the country. Many people have made a lot of speculations about this situation. Some people even made a big-nation game because of the power cuts, but the relevant departments came out to refute the rumors a few days ago.
The reason for the power cuts this time is not complicated, nor is it a contest between big countries. However, because of the current power cuts, many manufacturing companies have changed their production models, such as taking two days off for two days to relieve the pressure of power shortages.
However, this situation has also caused the production of individual manufacturers to decrease. In order to maintain current profits, many companies’ products have also seen price increases. Not long ago, some paint manufacturers and home furnishing manufacturers announced that some products will increase prices.
1. The ceramic tile manufacturer Dongpeng Ceramics announced a price increase
When the "power curtailment tide" is approaching, many manufacturing companies have begun to limit production and save electricity . For many industrial enterprises,Starting from this node, it is about to usher in a climax of price increases. Take paper companies, which are large power consumers, for example. Many companies have issued early notices announcing price increases for some products.
There are even many netizens who said that 's power cuts this time gave some companies an excuse to raise prices. Take the hardware and building materials manufacturing industry that is more common in our lives, and some companies have announced price increases.
Just a few days ago, many leading companies announced production restrictions and wanted to gradually increase prices in this way. However, Dongpeng Ceramics is very straightforward, issuing an announcement directly on the official website announcing a product price increase. This move of Dongpeng Ceramics also caught many customers who have recent demand by surprise.
On September 24, Dongpeng Holding issued a related announcement stating that it will make certain adjustments to the prices of main products. Starting from October 1 this year, the sales price of ceramic tile products will be raised, and products of different specifications will be raised differently.
In this price increase, large package channels, engineering channels and large retail will all participate in price adjustments. is aimed at some designer channel products, focusing on cheap products and some retail specifications products,The price will be increased by 5% in the corresponding preferential policy or contract transaction price.
In response to this increase, people also began to question Dongpeng Ceramics: Is it just to find an excuse for the price increase at this critical moment of power cuts? As an old ceramic building company, wouldn't it be disheartening to do so?
2. Dongpeng Holdings explained the reasons for the price increase
In the face of heated discussions on the Internet, Dongpeng Holdings also explained in this announcement that it was because of the increase in raw material and energy prices, plus To promote the shortage of power supply, decided to increase the price of some products after comprehensive consideration.
The mid-year data report released by Dongpeng Holdings in 2021 shows that from January to June, the company's revenue rate in ceramic tiles reached 3.076 billion yuan. accounted for 84.86% of the company's total revenue in the first half of the year, an increase of 40.28% over the previous year.
This report also reflects that Dongpeng Holdings’ core products have seen a downward trend in gross profit margin. Also in the first half of the year, the gross profit margin of ceramic tiles has dropped to 31.91%, a decrease of 2.41% from last year. Although the overall gross profit margin has also decreased, it has become the lowest point since its listing.
In the face of widespread doubts,Dongpeng's explanation in this regard is the cost incurred during the transportation of goods. Although it was also stated at the time: the company has done a great job in product development and cost control. It seems that the cost of goods has changed.
These data also show that if you want to maintain the company's net profit, this price increase must be implemented. If friends who know ceramic tile production know that titanium dioxide is the main raw material in the ceramic tile production process, but since September, the price of titanium dioxide has also shown a continuous upward trend.
Up to now, more than 20 domestic companies have announced the price increase of titanium dioxide. The quotations of domestic titanium dioxide manufacturers have been raised by 800-1000 yuan/ton compared to the past. The current average price of titanium dioxide is more than 20,000 yuan, an increase of nearly half from the first half of the year.
As far as the current market is concerned, Dongpeng Ceramics is not the only investment company that announces price increases. Prior to this, some ceramic construction companies in Foshan, Guangdong had announced the increase in the price of some commodities, and the reason given was also that the price of raw materials increased significantly.
At the same time, there are also economic experts who said: This time many ceramic tile companies have the biggest impact on the price increase, which may be factors such as coal prices, natural gas prices, and power restrictions. The percentage of increase caused by the rise in raw materials is not very large.
3. Domestic coal and electricity consumption is relatively large
In the process of making ceramics, ceramic tile companies have a large demand for raw materials, as well as coal, electricity, and natural gas. Especially in the process of manufacturing ceramics, the electricity consumption is relatively large, and the cost of electricity is now rising relatively high.
On September 17, 2021, the purchase price of electric coal in eastern China showed that the combined price of 5,500 kcal reached 990 yuan in just 9 days from September 9 to 18 /Ton, an increase of 43% year-on-year. The comprehensive price of 5000 kcal reached 882 yuan/ton, an increase of 39%.
Most of our country's power generation relies on coal. In recent years, as coal prices have risen, the cost during this period has also increased significantly. Data released by in July this year showed that the unit price of domestic imported coal has reached US$82.5/ton, an increase of US$12 over last year.
In addition to the increase in coal prices, the price of natural gas has also shown an upward trend again, with an increase of 0.6 yuan per cubic meter. It is necessary to know that the gas consumption of pottery enterprises is quite large. In this respect, the cost of natural gas has also risen.It is also one of the reasons for the increase in prices.
In addition, some power curtailment requirements have been issued across the country, and the production lines of many ceramic companies have also been affected, and even complete shutdowns have occurred. A combination of the above shows that the cost of related companies in the manufacturing process has risen, and the price has naturally increased.
But then Dongpeng Ceramics also said that this time the manufacturing cost has risen, and the price of goods has also increased. There is still a lot of uncertainty about the impact of commodity prices, and there may be fluctuations in the future. Relevant retailers and consumers must also be prepared.
IV. Summary
The current power restriction and the price increase of some commodity raw materials have promoted the price of some commodities and industrial products to a certain extent to increase the price index . For some home furnishing enterprises in the middle and lower reaches, they need to bear greater pressure.
For some small home furnishing manufacturers, the ability to resist risks is low, and they can only be resisted by further deepening. According to the current situation, only some powerful companies can withstand this shock. However, most companies do not have a good solution for cost control and stable profits. They can only increase product prices.Shift the pressure on to consumers to gain a chance of survival.
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