Dec 14 2009
Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, predicts that construction materials prices will rise 10% at the end of this year.
Himfr finds that in the larger environment of rising prices, an increase in prices of building materials is inevitable.
In the building materials market, Himfr found that the cost of coatings, paints, etc. are up 10% over last year. Even if the individual product prices remain unchanged, merchant discounts are also significantly declining.
Himfr analyzes raw materials and freight price increases
The Chinese Spring Festival is always a time for increased decoration materials prices. Considering the larger economic environment and the factors of raw material prices, transportation costs and labor costs, the price increases were a result of the rise in price of furniture and building materials.
At present, the Chinese and international timber supplies are declining; timber prices are expected to move strongly upward. Himfr judges that the future of the Chinese timber supply and demand relationship will change. Considering the international community's forest carbon sequestration, the international supply of wood will shrink. National governments, because of carbon emission targets, now have narrowed the pressure and tightened the timber harvesting targets. The Chinese timber market's downstream products, such as real estate, doors, flooring, paper and other wood processing applications, are on fixed-asset investment and still in a 20% growth pattern. Demand for wood will continue to maintain a rapid growth. Himfr forecasts that in the near future the price of trees will indeed rise. So after the Spring Festival, the price of home building materials will inevitably continue to rise.
However, not all home-improvement prices will rise, such as faucets, showers and so on. The products themselves are profitable, so they are little affected by energy and raw materials production, but other low-profit products, such as tiles, plates, etc., are greatly affected, and their price increases are inevitable.
Source: http://himfr.com/