Recently, many ceramic companies in Linyi and Zibo, Shandong, have successively issued price increase notices and raised the prices of some products. The notice shows that the price increase this time is mainly for small floor tiles (specification 300×300mm), and the increase is generally between 0.1-0.15 yuan. In addition, the prices of antique bricks from some manufacturers have also increased.
The notice stated that the price increase was due to the increase in environmental protection costs and raw materials, which led to an increase in production costs for manufacturers. In fact, according to "Ceramic Information", the price increase of some products in Shandong is mainly due to the continuous increase in LNG prices in recent times, which has pushed up the production costs of ceramic companies.
LNG prices continue to rise
The price per ton has risen to 3,900 yuan
A person in charge of a ceramics company in Linyi who did not want to be named told Ceramic Information that due to the influence of upstream gate stations, LNG prices have been rising continuously in recent times, and his company has even received several rising quotes a day. At present, the price of LNG has risen from about 2,700 yuan per ton during the low period before this round of price increases to the current 3,900 yuan.
"A few days ago, the price of LNG was still around 3,700 yuan per ton, but it did not last long. The price of one ton of LNG has increased by 500-700 yuan cumulatively." The sales general manager of a Linyi ceramics enterprise also said.
In addition, the person in charge of a ceramic enterprise in Zibo also confessed to Ceramic Information that the price of LNG currently used by his company has also risen to 3,900 yuan per ton.
It is understood that since the price adjustment points of the LNG companies connected to each ceramic company are different, the supply prices of LNG used by Shandong ceramic companies are also different. Currently, the LNG price of Shandong Ceramics Enterprises is 3,700-3,900 yuan per ton. Before this round of price increases, the price of one ton of LNG was around 3,200 yuan.
It is this increase in LNG prices that has led to an increase in production costs for some manufacturers in Linyi, forcing ceramic companies to raise product prices.
In addition, according to "Ceramic Information", currently, pipelines in Shandong production areasNatural gas prices have not yet been adjusted, but most ceramic enterprise managers believe that with the advent of the heating season, pipeline natural gas prices may also increase next month.
“This year has been particularly difficult.” The person in charge of the above-mentioned Linyi ceramics company who did not want to be named said frankly. It is understood that due to the continuous rise in fuel costs, the pressure on many ceramic companies that operate with low profits or guaranteed capital has increased sharply.
Costs continue to rise
Ceramics companies say “some products are sold at a loss”
At present, as the heating season in northern production areas approaches, natural gas prices may rise. This will greatly increase the production costs of various ceramic companies in Shandong, and profoundly affect products that operate with low profits or guaranteed capital.
"Many products are now sold at a loss. If production costs continue to rise, it will be difficult for enterprises to bear it. In this case, it is better to stop production." The person in charge of the above-mentioned Linyi ceramics enterprise, who did not want to be named, said frankly.
Regarding the price increase of small floor tiles, the person in charge of many Linyi ceramic enterprises said that because there is no profit, the manufacturers have to increase the price. "Some time ago, due to the poor sales situation, major manufacturers reduced prices to compete for orders. However, in fact, after the price reduction, it did not greatly stimulate product sales. Instead, it led to lower and lower profits. If things go on like this, it will affect the survival and development of enterprises. ”
It is understood that antique brick manufacturers have also issued price increase notices this time. Affected by rising costs, some ceramic companies have begun to maintain capital or sell at a low profit in order to survive. Some products are even sold at a loss. If they choose to stop production early Taking a holiday too early will also affect the recruitment situation after production resumes next year, and many ceramic companies are therefore in a "dilemma".
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LNG prices continue to rise, up 35.57% in 20 days
According to Zhuochuang Information monitoring data, as of October 28, 2020, the national average ex-factory price of LNG was 3,723.42 yuan/ton, an increase of 976.97 yuan/ton, or 35.57%, compared with the first working day after the National Day.
Since October, the main reason why LNG prices have continued to rise is strong demand. After entering October, cold air appears frequently, and some cold areas in the north gradually begin to preheat heating. In addition, the large-scale heating season in the north is getting closer, and the demand for LNG peak shaving and urban fuel replenishment gradually increases. This part of the increase The demand has made the factory plan tight, and the batch shipments at the receiving station have continued to be high. In addition, because some receiving stations are operating at almost full capacity, remote shipments have been restricted. This shows the strong demand for LNG across the country.
However, with the recent continued high prices, to a certain extent, the previous reason for LNG may be suppressed.Cheaper prices have increased demand in some industries, thus putting a certain amount of pressure on downstream receiving goods. At present, some regions have shown signs of sluggish delivery, regional price differences have increased, the cross-flow of LNG market resources has increased, and quotations have been lowered in some regions. Now that prices have risen to a relatively high level, it is expected that price increases may slow down, and the early nationwide increases may turn into regional increases.
(The article is reproduced from Ceramic Information)
