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Rising oil prices, 15% higher paint costs, and 15% higher building materials industry triggered a chain reaction

rising oil prices, 15% higher paint costs, and 15% higher building materials industry triggered a chain reaction

June 26, 2008

[China paint information 234 building curtain wall] as a basic energy, the recent rise in the price of refined oil has worsened the building materials industry, which has been plagued by multiple factors at home and abroad, such as cost pressures and rising raw material prices, and further compressed its profit space; More insiders predict that in the short term, the building materials industry may cause chain reactions in production, supply, marketing and other links due to rising costs


the national development and Reform Commission recently issued a notice, deciding to increase the price of gasoline and diesel by 1000 yuan per ton and aviation kerosene by 1500 yuan per ton from June 20. The national average retail benchmark price of gasoline and diesel was adjusted from 5980 yuan and 5520 yuan per ton to 6980 yuan and 6520 yuan respectively; The national average retail price is 7540 yuan and 7040 yuan per ton respectively after an increase of 8%; Equivalent to an increase of 0.8 yuan and 0.92 yuan per liter respectively. The ex factory price of aviation kerosene is stable by per ton; 5950 yuan is adjusted to 7450 yuan. And decided to increase the national sales electricity price by an average of 2.5 cents per kilowatt hour from July 1

according to relevant data, since the domestic refined oil price adjustment in November last year, the oil price in the international market has continued to rise, especially since February this year, the growth rate has accelerated. On February 19, May 6 and May 21, it broke through $100, $120 and $130 per barrel, and rose to $138.54 per barrel on June 6


the relationship between upstream and downstream industrial chains, and the sharp rise in the oil price of finished products have the first impact on the paint industry, a downstream derivative industry of the oil industry. It was learned from the relevant person in charge of Shanghai Jiabaoli paint that the rise in oil prices has put it under greater pressure of rising costs, mainly reflected in the rapid increase in transportation costs and raw material costs. The person in charge predicted that the rise in oil prices is estimated to increase the raw material cost of coating enterprises by about 15%

compared with coating enterprises, the cost pressure of flooring and ceramic enterprises is slightly lower. Chenzhihua, deputy general manager of Huili flooring, said in an interview with SouFun: "the impact of oil prices on us is preliminarily estimated to be about 5%. Paint enterprises are experiencing the cost pressure caused by the direct rise in oil prices, and we will also be indirectly affected. In the next one to two months, there may be a chain."


I hope it can be used for production soon.

the home building materials industry is in an unprecedented dilemma due to the increasingly fierce competition, the rise in raw material costs, the increase in labor costs, the decline in the RMB exchange rate and many other complex market environments at home and abroad. The cost continues to rise. Due to the rising prices of crude oil and fuel materials, especially the rising prices of steel for several consecutive years, the production cost of building materials continues to rise

how to deal with the rise in oil prices and what measures do enterprises take? The answers given by the bosses are similar. Huili chenzhihua said, "in view of the rising cost, there is no other way except internal digestion of enterprises, development of new products through scientific and technological innovation, and search for new growth points and market space."

in the past two years, the state cannot describe the changes of materials in the impact process, and the implementation of macroeconomic regulation and control policies has gradually begun to show its impact on the home building materials industry. With the implementation of China's macroeconomic regulation and control policies, the building materials market is gradually becoming more rational, and the industry will usher in the era of "post demand growth", in which enterprises will also face more tests

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