The market is very competitive in this year. And there are a lot of obstacles for the resilient flooring manufacturers in China. The Chinese economy is going down since the last year and we have done a research in our industry.
USA Tariffs & Market
USA started 25% extra tariff from 10th May. Previous tariff rate was 10% and now it is 25%.
The exports to USA declined at least 20% this year. The main reason is that customers are waiting to know whether the consumers are willing to accept the increasing prices. Vinyl floors tax rebate ratio in China has been reduced from 16% to 13%. In the end the price for exporters can increase 2.2%.
European & China Market
Exports to Europe grown quickly. More manufacturers are focusing on western Europe but there may be a price war in that market.
SPC Flooring Boom in Sales
There is no famous vinyl flooring brand in China. It is a pitty. China real estate demand is dropping and its consumption with floors is not as big as before. SPC flooring is growing fast and replacing other products. Many LVT floor factories are considering install new production lines for rigid core SPC planks. It definitely will be a major kind of floor covering in the near future. Our resolution is that someday the trade war will be put to an end and it will benefit both countries.