In recent weeks, the cost of transportation in China has seen a significant increase, impacting various industries, especially those reliant on logistics. Starting from February 20th, the national railway freight rate rose from 11.51 cents to 13.01 cents per ton-kilometer, marking an increase of 1.5 cents or nearly 13%, which was higher than anticipated by market analysts. Following a four-day gap, the National Development and Reform Commission announced a price hike for domestic refined oil, effective early on February 25th. As a result, Lanzhou's No. 97 gasoline once again exceeded the "8 yuan" threshold, reaching 8.04 yuan per liter.
Major logistics companies have since confirmed that they will be raising their transport fees due to these combined pressures. Industry experts believe that the rising costs of both rail and road transport are bound to influence the prices of goods that depend on these channels. In particular, home improvement building materials, which often rely heavily on external supply chains, have become a focal point for investigation.
On February 27th, the Xigu Ceramics Market saw very few customers after the Lunar New Year holiday. When asked about the impact of increased shipping costs, Cao, the manager of Hong Tao Ceramics, mentioned that the price of train containers had gone up from 1,500 yuan last year to 1,520 yuan now. However, he was even more concerned about the increase in road transport costs driven by higher fuel prices. “The cost for a single truck delivery has gone up by 400 yuan,†Cao noted.
For retailers, the burden of these rising costs is reflected in a price increase of between 8% and 13%. Mr. Wang, a veteran in the decorative building materials industry, admitted that price hikes are inevitable. “Historically, any rise in transportation costs inevitably leads to higher product prices. This isn’t just limited to the building materials sector but affects other industries as well,†he said. According to multiple dealers, this year’s building materials prices in Lanzhou are expected to go up, with increases ranging from 8% to 13% depending on the product type.
While major distributors have announced price adjustments, the renovation market hasn't seen a dramatic shift yet. Ceramic tiles and solid wood flooring prices remain largely unchanged compared to last year. Some industry analysts suggest that the slowdown in the decoration sector over recent years may explain the cautious approach taken by some dealers. A few are adopting a wait-and-see attitude, and there are even reports of lower-priced items being sold at the start of the year. “Price increases are likely to be more visible in May and June,†one source revealed.
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