Decline In Value Of Steel And Other Raw Materials Is Expected To Lead To Price Cuts Home Appliances

With the recent financial turmoil in global raw material prices have also experienced a drastic decline. The international market, oil prices once 140 dollars a barrel from the highest down to 70-80 U.S. dollars a barrel now; steel market also broke the news of a substantial price reduction.

Appliances Market, the previous two years, because raw material prices caused by household appliances, “price rises” once affected the entire market, particularly in

Air conditioning , Kitchen products, represented by white goods. Now raw materials prices, presage a future price drop then? Understanding by the press, the current prices of home appliances market as a whole remained stable, but if raw material prices continue to drop, the market “price war” too far off.

Overall prices remain stable Gree, Midea, Million and And other manufacturers concerned that although the recent decline in raw material prices, but the overall price of products still remain stable. On the one hand, from the production situation, despite the current decline in raw material prices, but the vast majority of products are available at the early stage when the production of raw materials prices, the cost itself high, in addition to the past year as rising raw material prices other production costs such as labor costs, logistics cost and so has been up; the other hand, although raw material prices have dropped, reducing the production pressure, but many manufacturers are now faced with selling pressure, particularly in the present, many real estate market downturn, sales of home appliances market has also been no small impact on the manufacturer price is relatively cautious.

The same time, prices of raw materials price fluctuations caused by a certain lag.

Suning Guangzhou district vice president Gu Wei believes that “two years ago, when prices are not immediately go up, there are one to two months of delay effect, so the price drop is not immediately achievable, but also depends on the impact of the environment. “under a variety of factors, the overall price of household appliances will not come down quickly.

Good advantage on the market price cuts

Guangzhou Gome, Suning stores and other major appliances to have said that at present the overall price of household appliances market is relatively stable, but more conducive to sales price reductions. U.S., General Manager, Guangzhou, China Cluster, said: “In fact, raw material prices decline, for the business case is a good thing, beneficial to the consumer’s ah. Look for a category of products, such as

TV Prices of such products has been declining this year. “States United States last week signed with the major color TV manufacturers to purchase more than 300 billion big one, one of the aims is to promote large-size 40-inch or more

Flat Panel TV The rapid price reduction. With air conditioning as the representative from white goods to see, “price rises” from the beginning of 2006 after blowing once caused market concern. Reporter noted that consumer electronics market this year, regardless of air conditioning,

Refrigerator , Washing machines or water heaters and other kitchen products, the overall prices are higher than a year ago of 5% -10%; most

White While the prices are going high-end line, model updates, the high-end features more prominent, and some high-end models in the price even higher than last year by 15% -20%. However, the overall one-year price movements of view, the average price remained relatively flat.

“Turn domestic exports” to promote price cuts

Addition to raw material prices decline, the consumer electronics market this year, exports to the impact of future price movements will also impact. Deputy Secretary General of China Chamber of Commerce Lu Renbo appliance clear to reporters that the next time the price of home appliances have cut prices trend: “Now the situation of the domestic market is the ‘glut’, has always been the situation. But this year the situation more serious, because by the exchange rate and other factors, many household electrical appliance enterprises are facing the slowdown in exports. this part of the product to be sold domestically, thus increasing the ‘glut’ of conditions, so there is certainly the price reduction trend. “But he also said, on the whole, the price will not fluctuate too much, only a small range of slip, fall is about 5% -10%.

Multiple appliance manufacturers have said that the future will not cut prices, but also the overall market price may be. A home appliance store who said: “If raw material prices have been falling down down, markets ‘price war’ is possible. But when the price cuts, lower the number, I can not say, can only tell you, like Golden Week This promotion period, the price is definitely down. ” SABUNG AYAM