The article discusses the recent surge in transportation costs and its impact on home improvement building materials. Starting from February 20th, the national railway freight rate increased from 11.51 cents to 13.01 cents per ton-kilometer, marking a 1.5-cent rise or nearly a 13% increase—far surpassing market expectations. Four days later, the National Development and Reform Commission announced a price hike for domestic refined oil, effective from early February 25th. As a result, Lanzhou No. 97 gasoline once again crossed into the "8 yuan" range, reaching 8.04 yuan per liter.
Major logistics companies have since announced that they will be increasing their transport prices due to these combined factors. Industry analysts believe that rising rail and road transport costs will inevitably push up the prices of goods that depend heavily on these transportation channels. In particular, home improvement building materials, which are largely sourced from outside the city, have come under scrutiny.
On February 27th, the Xigu Ceramics Market was relatively quiet just after the Lunar New Year. When asked about the cost increases caused by higher shipping fees, Cao, the manager of Hong Tao Ceramics, said, “A year ago, the price for a train container was 1,500 yuan. After the freight rate increase, it went up to 1,520 yuan.†However, he expressed even more concern over the rising costs of road transport, which have been driven by higher fuel prices. “A single truckload now costs 400 yuan more,†he added.
Mr. Wang, a veteran in the decorative building materials industry, explained that price hikes are unavoidable. “In the past, any increase in transportation costs has always led to higher product prices. This isn’t unique to the building materials sector—it happens across many industries,†he said. According to reports from several building materials dealers, the rise in transportation costs is expected to lead to an 8% to 13% increase in Lanzhou’s decorative building materials this year, depending on the product type. Tile products, for instance, have seen an increase of around 8%, while solid wood doors, windows, flooring, and furniture have risen by approximately 13%.
Despite the official announcements of price increases, the renovation market has not seen significant changes yet. Prices for ceramic tiles and solid wood flooring remain similar to last year. Some industry analysts suggest that the decoration market has been sluggish in recent years. While most major distributors have confirmed the upcoming price hikes, some dealers are taking a cautious approach, holding back on raising prices until later. It's also possible that some retailers are selling at lower prices at the start of the year. One insider noted, “Commodity price increases are likely to be concentrated in May and June.â€
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