Hardware City Merchants "Calm" to Deal with Fluctuations in Raw Materials

Since the second half of last year, the prices of metal materials such as copper, aluminum, zinc, iron, and plastics have continued to rise. The prices of hardware decorative materials and hardware supplies have also risen by more than 10%. However, the reporter visited and found that Yongkang hardware city merchants face the rise of bulk raw materials, it is very "cool", both said that prices have not changed much this year.

Business inventory

Xinmin Wujiao is a shop that operates welding equipment, welding wire, calcium carbide, and low-voltage electrical appliances. A buyer of a company came to the shop to purchase a silver-containing welding wire. Wang Kangyong, the owner of the shop, and the buyer said that although raw material prices have been rising this year, Welding wire prices did not rise.

"We have prepared a lot of goods. If the price of raw materials does not fluctuate in a large scale, we will not easily raise prices to customers." Wang Kangyong has already done a five-decade business in the past 20 years and has accumulated a lot of old customers. "Now price Particularly transparent, the customer's price for each purchase is made on the computer. If the price changes, it will be reflected immediately. Once the price is forcibly increased, the source of customers may be lost."

It is not only one of the consumables' welding wire that prices remain stable, but also the prices of low-voltage electrical appliances and wires and cables that are highly correlated with copper prices have not changed much since the beginning of this year. Businessmen say that the price of copper has dropped a bit in the past few days, which is good news for the hardware and plumbing industries. For example, about 80% of the raw materials in plumbing are plumbing, and it is obvious that the plumbing industry is affected by the price of copper. Although the drop in copper prices in recent days has slightly eased the cost pressures of enterprises, compared with the price of 53,000 yuan/tonne in June last year, the current copper price is still at a high level, and companies are still under great cost pressure. Previously inventories of high prices, so we will not cut prices, but also need to see the future trend of copper prices to decide.

Hardware accessories stable

China Fangda Holdings Co., Ltd. has offices in Hardware City. This shop selling electric hammer drills, alloy saw blades, diamond saw blades, woodworking milling cutters and pneumatic nail guns mainly supplies various industrial consumables for Yongwujing and production enterprises and distributors throughout the country. Huang Shunfu, an office manager, introduced that the prices of various products in his store were the same as last year and were not affected by the increase in raw material prices.

Huang Shunfu said that their prices are priced by the manufacturer. Since the second half of last year, the ex-factory price has not been adjusted. Therefore, the wholesale and retail prices of all commodities in the shops do not change.

However, some businesses also stated that since the beginning of this year, the rental prices of some shops in the Hardware City have increased by 40%-50%, which has directly led to the price increase of some products.

Many companies in the hardware city opened an outlet store owner admits that the current commodity prices have shown signs of a correction, if the price of copper, etc. continue to fall, they will be reduced by two months after the corresponding product prices. One of the shopkeepers said that now the pressure on enterprises is not only the cost increase, the company suffers from problems such as power curtailment, which leads to a reduction in output and the price naturally goes up; labor costs and logistics costs are also increasing. “So the previous price increase has already been completely passed on to the production cost. If the raw material does not drop drastically, it is unlikely that the business will lower the price.”