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Chinese Stone Price will Increase in 2012

Southeast Network - Channel Guide on Dec. 6th,2011(Reporter --Shunhe Zhang) Stone price will be 15% of external price increased, which is unity start on the sailing date of Jan. 1st, 2012. Herald reporter was informed after recently interviewing a number of stone exporters in Xiamen.with the rate and labor costs risng, the stone exporters are preparing to improve price unitive. All of them occupy a pivotal position in Xiamen stone industry.
Promote 15%

Fujian Stone Association has issued a “mobilization order”

Recently, Herald Correspondent obtain a proposal about " Fujian monument Professional Committee Stone Association on Foreign price" .initiative noted, stone export companies are preparing a collective price hikes, time is scheduled on the Jan. 1st, the 2012 sailing.

Yesterday, Wanli Stone, Chairman Jingpei Hu revealed to the Herald reporter,"Not only is the monument, the stone export industry should raise prices." in fact, many companies have started to improve price on Dec. 1st, further more ,stone price will increases throughout the industry on the New Year's Day , the range data is about 15%.
The propose on price increasing of Fujian Stone Industry Association show that , the ordinary type plus 360-432 dollars /m3 ,. based on the ordinary, high-grade add 216-342 dollar / m3 .,that is 576-756 U.S. $ / m3.
? In addition, on the basis high-class,abnormal processing price has different degrees increase: the lotus seat plus $ 540/ m3 was base on high-level one set , lotus under seat is $ 360 /m3 more .While ginkgo surface, the amount of entry / exit fees plus $ 3 / set ( above fees are based on the number of original), and other molder is according to the processing shape. Meanwhile, the written proposal also mentioned that the price will be increased when it comes to the blocks price promotion.
Mr. Hu said that, actually, it is a long-awaited for increasing price in stone line.Before then, industry associations finally hasnot only reached an agreement and but obtain foreginer clients understanding after investigation and communication .It takes them more than 3 months
Higher costs
Stone is bearing the pressure to export
"Exchange rate and labor costs become higher, the stone export industry bearing great pressure." Hu told the journalist ,For example, the cost of Wanli stone increased by 5% -10% in 2011.
According to another preson-Xizong Chiang, the chairman of Fujian Haoxiang Group, analysis, that the first nine months of this year, the RMB has appreciated by 4.5%, wages increased by 30%, equivalent to about 7.5% more cost , only these two factors, stone suppliers bear reached nearly 12%. rise in the cost.
To make matters worse, in the context of wages rising and exporting various shapes stone, foreign stype stone, monument stone with artistic style increase, making the export price growing is far behind the cost increases. for example: The monument, before, a container only twenty-three kinds shape, but now a container orders reach twenty or thirty kinds shape.Normally Japanese order quantity of the traditional monument , outside the gate is gradually reduced, on the contrary,foreign tomb and artistic monument rising. In the price,beyond normal type, the traditional quote of high-type model was only $ 72/m3 higher ,;but after wages increased, a 10-inch angle Blackstone of senior Muslim monument cost was 9.17 U.S. dollars higher ; the two lotus-types is $ 25 More each.
Besieds, the low price, high claims make the stone businessmen daunting. From insiders saying,they are fear to pay the claims including from the cost of processing and back to change in Japan , besides various reasons can not dock and cost of air freight shipments caused by some event, which easy lead a loss entirely. Constantly owed money makes enterprise financing costs continue to increase, some importers even did not pay as agreed, leading to the factory must borrow to pay wages, materials, and some plants even at the monthly interest rate of up to 3 points by usury.

unknow Prospects
Depends on enterprise self-contral
Mr. Hu said that:" compared to other industries, We can say that Xiamen Stone Industry Association has an excellent consultation mechanism, which makes this a more mature industry price basis." but also admitted that price increases plan whether can fully realized or not in the industry, it depends on various enterprises, especially SMEs, self-conscious participation.

in reality, in the same time last year , Stone Industry Association, initiated a price increase to ouside. News reporter has learned that last year's price increase initiatives, depending on the price of different products, the price increase, respectively, 10% to 20%. Among them, before is $161-200/cai , now promote 11% -13% ,also the price below $ 60 has incresed by 20%.

However, the price increase initiative is issued, although the majority of enterprises has make a respond, in reality the implementation is still greatly reduced. From insider divulged , many companies in order to obtain orders, leading to disorderly competition, slow price increases and price increase is not in place, even not mention the phenomenon of anti-drop, and ultimately the overall increase is only 5% -10%, if sum the exchange rate, wages and a variety of materials, the cost blocks rising prices, the cost of growth is far exceeds the price increase.

"I hope that every companies set out the interests , together to comply with this initiative." Industry appeal stone enterprises to give up short-sighted interests and give up "no value" order to avoid damaging the whole industry benefit.
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