Price of exported home appliances surge
 
Price of exported home appliances surge

It was learned at the house appliance section of the Canton Fair that owing to price increases of raw materials, the export prices of major Chinese household appliances would increase 5% to 15%, and most companies believed that price increases would not have a significant impact on household appliance export.

As a major consumer of steel and copper, the household appliance industry has been under great pressure from rising costs this year, and price increase is the effective way to protect profit.

The Galanz Group predicted that prices of most household appliances would increase about 5%, air conditioner prices would increase about 10%, and prices of Kelon and Midea air conditioners would increase about 5% to 10%. According to the Jinling Electrical Company Limited, which handles about 90% of Guangdong's washing machine exports, washing machine prices would increase 10%. Hualing's air conditioners and refrigerators would also see price increases of about 10%.

It was reported that since the beginning of 2004, household appliance suppliers had raised quotations in the past three Canton Fairs. This year, they were more wary of speaking out than in previous occasions. They also stated that price increase was one of the ways to alleviate the pressure of rising growing costs. Owing to fierce competition, there is not much room for price increases.