Looking through the "Double Opposites" to the "Price Rising and Dumping" in Wood Flooring Market

Recently, the wood flooring industry is rumbling two contradictory news: one is that the American Flooring Enterprise Association accused China of exporting wood flooring products suspected of government subsidies and dumping, filed applications with the US Department of Commerce and the US International Trade Commission, and demanded the initiation of Chinese wood flooring companies. Anti-subsidy and anti-dumping investigations; the other is the rising prices of raw materials, wood flooring faces upward pressure on prices.

The price increase is that production companies believe that the cost is too high to maintain the normal operation of the company without raising the price. In case of dumping, sales are sold at a price lower than the cost, and an opportunity is taken to seize a certain market. For the rise of wood prices, many companies are quite calm. The stocks with more powerful companies have more inventories, and the increase in prices has little effect on temporary production and operation. It does not rule out that individual companies artificially raise prices in order to raise prices. The people have already wondered. The United States' "double counter" investigation is a big stick that hangs on top of Chinese wood flooring companies. To say that China's wood flooring products export prices are low, it is also because China is a "world factory", plus some companies are pursuing small profits, if the price below the cost of maliciously occupied the US market, which a Chinese company does not have the strength . As for government subsidies, at best, some local governments have implemented export tax rebates to encourage exports. The 5% tax rate does not necessarily affect the overall price system. It is completely ridiculous for the company to lose money and the local government will affix money to the United States for "dumping."

The prices of wood flooring prices have been slashed several times a year. In the end, they haven’t seen much growth. It’s just that the industry has been shaved more and more out of order. Instead of spending their energy here, it is better to unite and respond to the US "double counter" investigation. After all, once the “crime” was established, more than 150 companies involved in wood flooring companies may be able to withdraw from the US market and lose 10 billion yuan in sales because they cannot afford 100% of the punitive tariffs!