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The hottest discussion topic in the flooring industry this year is probably the price increase of raw materials. No matter which company you are, you can interview a senior or leader casually, and you can talk about it for a long time when it comes to the rising cost of flooring. Some industry official accounts also always post articles on similar topics such as "timber price increase", "raw material soaring", etc. So, is the price increase of flooring really caused by the price increase of wood? It can be said, not just.

1. Coating industry (floor paint)

Under the influence of the recovery of market demand and other factors, the prices of titanium dioxide, resins, emulsions, pigments, additives, and chemical raw materials such as bisphenol A and propylene glycol as coating materials continued to rise after entering the second quarter.

From the price trend of titanium dioxide powder, it can be seen that around August 2020, the price of paint raw materials is at a historical low as a whole, which intensifies the perception that this round of price increases has increased rapidly.

The impact of the price increase of coating raw materials products on coating companies is immediate. This is because paint companies are generally small in scale, lack bargaining power on the upstream, and at the same time rely on the downstream, which makes it difficult to increase prices. Therefore, they have become the core pressure-bearing link in the entire paint industry chain.

However, under the turbulent price hikes, coating companies cannot bear the pressure alone, and downward transmission of pressure is also an inevitable choice. Since the beginning of March, coating companies have experienced three price increases. The most recent one occurred at the end of May and early June, involving engineering coatings, architectural coatings, wood coatings, industrial coatings and other fields.

2. Paper industry (floor packaging box)

It is reported that among the raw materials of corrugated cardboard, waste paper generally accounts for more than 85%.

Some organizations pointed out that in 2021, “zero import” of waste paper will be achieved. Under the dual policy background of “plastic ban” and “rejection ban”, the supply gap of waste paper is expected to reach 6.89 million tons. The huge market gap directly caused the price of national waste to rise accordingly. The price increase of national waste has started in November 2020. In the long run, the price of waste paper will continue to rise. The competition for national waste and the layout of upstream raw materials will become paper companies. Core competitiveness.

By comparing the price of the same period last year, the national waste recycling price has unknowingly increased by nearly 20 points!

The trend of waste paper prices is closely related to changes in the price of containerboard corrugated paper. At present, many distributors of containerboard corrugated paper in the market have a backlog of inventory, which has restrained the rise in paper prices. However, with the advent of the peak demand season in the second half of the year, corrugated cardboard may usher in a new round of rising space.

3. Plastic (moisture-proof film, moisture-proof pad, etc.)

Plastic is a product used in all walks of life, and it also accounts for a certain percentage of flooring. Such as floor packaging plastic, the film on the back of the board, and the moisture-proof film required for paving are all plastic products, which are part of the cost of floor products.

At present, compared with the same period last year, the price of various plastic raw materials has increased by about 20% to 30%. Among them, polyvinyl chloride (PVC), which is widely used in building materials and industrial products, has a price that has reached nearly ten years of history. High position.

Plastic prices fluctuate at a high level, which brings certain pressures to trading companies in terms of risk control and capital costs. It is understood that petroleum is an important basic raw material for plastics, and the price of plastics is closely related to the price of crude oil. From January to March this year, due to the dual impact of supply and demand, the price of crude oil continued to rise, which drove the increase in the price of plastic raw materials. In addition, the overall demand for plastics is improving, which also supports prices.

4. Adhesive industry

Adhesives are widely used in the flooring industry. The production process of multi-layer and reinforced floors cannot lack the cooperation of adhesives. To a certain extent, the adhesive also affects the cost of the floor.

Due to the epidemic, some foreign raw material suppliers were unable to resume work and production. In the case of substantial increases in the prices of raw materials in the industry, rubber industry companies have launched price increases.

On April 20, the plastics giant Henkel issued a letter stating that due to the sharp rise in a variety of key raw materials, starting from May 1, the company's series of products will undergo price adjustments. Affected by the recent skyrocketing prices of chemical raw materials, many well-known international and domestic rubber companies have successively increased their product prices before this.

A series of rising prices of raw materials have had a great impact on the flooring industry. Most people in the industry still hold a rational attitude, believing that this phenomenon has both advantages and disadvantages for the development of the industry. The good part is that the industry is undergoing a new round of reshuffle or intensification, and some poorly-operating companies will face bankruptcy or exit. At the same time, some companies will find new opportunities in the changes. In addition, the disadvantage lies in the "pain" caused by price increases, which will inevitably increase the operating costs of flooring companies in a short period of time. Companies need to use multi-dimensional and multi-path to weaken the disadvantages brought by price increases to the corporate brand and operation levels. influences.

What is your opinion?