Sanitary products to lower prices? The price of raw materials such as copper, nickel, steel, and waste paper fell in a collective manner.

Since the end of 2016, the prices of raw materials such as copper, nickel, steel, and waste paper needed by the sanitary ware industry have entered the upstream channel and reached the highest point in mid-February 2017. Starting from last month, raw material prices began to fall. Domestic nickel prices touched the low point of the current year in late March. Steel prices also fell due to reduced orders. In response to the market, steel companies have successively reduced their production lines to avoid risks.

Copper: 2,000 yuan/ton lower than February

In February 2017, the union of the world’s largest copper mine and Chile’s Escondida copper mine announced a strike. During this period, the world’s second-largest copper mine and Indonesia’s Grasberg mining area also suspended exports. Affected, the Yangtze River spot copper price reported 49,580 yuan / ton, up 2730 yuan / ton; Guangdong spot copper price rose to 49,880 yuan / ton, up 3020 yuan / ton.

After a long period of time, the domestic spot copper price has declined since late February. In March, the price was mixed, but the highest price did not exceed 47,600 yuan/ton, while the lowest was on March 27, dropping to 46,000 yuan/ton. On April 7, the average spot copper price was RMB 47,540/tonne, which was a drop of more than RMB 2,000 per ton compared to the February peak.

Copper is the main raw material of hardware products, including water dragons, showers, angle valves, floor drains and other products that use a lot of copper. Taking a faucet as an example, about 500g of copper is used for every good tap produced. The decline in copper prices is a major advantage for hardware and ware companies.

Nickel: It fell to 80,000 yuan/ton in March

In February 2017, the Philippines shut down a number of mines that mainly produce nickel and was affected. Both spot nickel and futures nickel prices rose. At that time, the domestic spot nickel price rose to 90,688 yuan/ton, a record high in recent years.

The domestic nickel price remained high before the beginning of March, but then declined rapidly. It fell to nearly RMB 80,000/ton through mid-March. Although it subsequently rose slightly, it has recovered from the high price of RMB 90,000/tonne in the previous month. normal level. On April 6, domestic spot nickel prices were reported at 8,4812.5 yuan per ton.

Nickel is an indispensable raw material in the field of sanitary ceramics. The faucet surface needs to be electroplated. The electroplating layer is generally composed of a layer of nickel and a layer of chromium. Nickel can improve the wear resistance and corrosion resistance of the faucet and effectively prolong the life of the product. The nickel layer of high-end products can be as thick as tens of microns. In addition, some ceramic bathroom products will also be nickel-plated to make the surface stained with a layer of metallic luster, increasing sense of style.

Steel: Stainless steel prices fell more than RMB 1100/tonne compared with February

Among the sanitary raw materials, the most serious decline was steel. Affected by the recovery of production capacity of downstream companies, environmental protection supervision, and capacity reduction, steel prices also soared from February. On February 17, the average price of steel products nationwide was 3,670 yuan/ton, which was 5.16% higher than the previous week. The high bubble of steel prices burst in March. With the limited production or the suspension of production of steel mills, the steel prices began to fall in late March. As of March 26, the domestic spot steel price index closed at 135.98 points, a week. It fell 2.58%. According to the latest data, as of April 5, the domestic steel price index was 132.56, a week-on-week decrease of 2.52%.

In stainless steel, domestic spot prices also fell from March. On April 6, the market price of 304 stainless steel plate 1.0*1219*2438 was reported at 14,396.15 yuan/ton, which was a drop of more than 1,100 yuan/ton from the highest point of the previous month.

In bathroom products, the main use of steel products are bathroom accessories, shower door handles and so on. Stainless steel is also used in bathroom accessories. In addition, stainless steel faucets, which currently account for 5% of the tap water market, also require a large amount of stainless steel. Steel prices have fallen, and the cost of purchasing raw materials for these companies is expected to fall.

Wastepaper: Decreased from March, 300 yuan/ton lower than historical highs

Although raw paper is not a sanitary raw material, it is still indispensable due to the product packaging aspect. At the end of 2015, the average price of white cardboard market was around 4,300 yuan/ton, and by the end of 2016, the average price rose to 5,300 yuan/ton. The price of paper has generally declined since March 2017, in which waste paper, the main material of packaging paper, has drastically dipped. According to incomplete statistics, from March 1 to March 31, the price of waste paper has dropped from a historical high of around 1,800 yuan/ton to around 1,500 yuan/ton now. According to the analysis, the current downstream corrugated base paper is in the demand off-season, and the paper industry has increased its inventories. It is expected that corrugated paper prices will be in a downward adjustment state for quite some time.

The price of raw materials fell. Will the bathroom follow the price cut?

Sanitary raw material prices have risen sharply since December last year. It is believed that people in the industry are also impressed by the prices of raw materials that were flying around at that time. Although it was predicted at that time that sanitary products would collectively increase prices by 15% to 30%, the actual price increase would be after 2017 Chinese New Year. With the lower prices of raw materials, it is expected that sanitary ware companies will be more convenient than before, but in the case of a new round of environmental remediation in the country, the probability of a significant reduction in production costs is expected to be very small. Price increases are difficult to lower prices, just need the crowd to start as soon as possible.

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