Yes, prices will begin to increase in the second half of 2021.
The main business scope of Zhuhai Gree Electric Appliances Co., Ltd. is the production and sales of air conditioners, self-operated export business of air conditioners and the import and export business of related spare parts.
Air conditioners, household appliances, and smart equipment are the company's main products. According to data released by "HVAC Information", Gree central air conditioning ranked first in the first half of 2021 with a market share of 16.2%, playing a leading role in the industry; the conclusion drawn from "Industry Online" is that in 2021 In the first half of the year, Gree's internal sales of home air conditioners were 33.89%, ranking first in the home appliance industry.
In this case, the possibility of price reduction is very small, unless it is some outdated and old products, because this year, the price of everything is increasing, especially chips and LCDs. One piece, the price has increased quite a lot.
Because according to the current situation, the price of bulk raw materials copper, steel and aluminum has been rising, and labor costs are getting higher and higher. It has become normal for air-conditioning manufacturers to increase the price of their products.
The food price index rose for the 11th consecutive month in April, and global wheat and corn production is expected to increase in the future. The report pointed out that the Food and Agriculture Organization of the United Nations food price index rose by an average of 120.9 points in April, a month-on-month increase of 1.7%, and a year-on-year increase of 30.8%. Among all types of food, sugar prices ranked first in price increases, and cereal prices resumed their upward trend.
The rise in raw sugar futures directly leads to an increase in import costs. Based on the current price of about 17.5 cents/pound, the import and processing of Brazilian raw sugar within the quota (15% tariff) and outside the quota (50% tariff) The costs are around 4,400 yuan/ton and 5,650 yuan/ton respectively, an increase of about 9% from a month ago.