20% increase in wood and furniture prices, 30% in electrical and mobile appliances, and 40% in ready-made clothes
Factories stopped supplying goods to determine the new increase.. Traders raise prices for fear of losing capital
Wood prices have seen a significant increase following the government’s decision to increase the price of the dollar, which led to a 20% increase in furniture prices, this was confirmed by manufacturers and importers of wood, stressing that Egypt wood with 100% of foreign imports, and members of the Chamber of Wood Products and Furniture Industry in the Federation of Industries confirmed, that Some of the increase in the value of the dollar Manufacturers are currently studying the cost of increasing the value of wood and the cost of increasing the dollar on each manufactured piece during the current period, while “Mohsen Al-Tajouri”, a wood importer and deputy head of the Importers Department, during the emergency meeting called by the department following the decision to raise the price of the dollar, confirmed that some Wholesalers have currently stopped selling their stock, to which the old price applies, before the exchange is released d, to raise the price later.
As regards the increases in timber, the price of a meter of beech wood rose from 12 thousand pounds to 13,777 pounds on the factory floor without the cost of transport, and the price of a meter of imported Mosky first grade rose from 9.5 to 11 thousand rose pounds per cubic meter, and the price of a cubic meter of Swedish wood was recorded at 12,100 pounds And the price of a cubic meter of American oak is 31,600 pounds, and the price of a square meter of mahogany wood, first degree, is worth 24,500 pounds Although the price of a bedroom almost a year ago was no more than 18 thousand pounds, the rise in raw material prices with the rise in the price of the dollar is the main reason for the rise in the prices of bedrooms, and a number of carpenters confirmed that there are rooms whose price starts from 13 and 15 thousand pounds, but they are Chinese wooden worktops. And the poor turnout made traders reduce their profit rate, especially after the increases in the prices of all materials such as glue, nails, painting tools and accessories, as well as an increase in workers’ wages, which vary between 200 and 250 pounds per day.
While others confirmed that the sales movement is weak, even those who are about to get married have reduced the number of rooms they buy.
Prices of electrical and mobile devices
After the recent rise in the price of the dollar, dealers of electrical appliances raised prices without waiting for the new prices from the manufacturing companies, and some factories also stopped supplying appliances, the orders of dealers they contracted with , cancel and stop online sales. of the producing companies, and their owners justified that the product is missing in the market in an effort to wait for sale At the new prices, although some factories were pricing the dollar at 23 pounds earlier, before the exchange rate was liberalized.
Ashraf Hilal, head of the Electrical Appliances Division at the Chamber of Commerce and a member of the General Division for Importers, explained that electrical appliance factories will recalculate their costs if the dollar price rises above 23 pounds, explaining that some factories will sell their products priced according to the price of 23 and 24 pounds in the last period.
He pointed out that there are costs for factories that the consumer does not see, represented in the payment of fines to container companies in dollars and production requirements, and that the costs vary according to the production of some factories, there are factories where production is large and others whose production is limited.
While a number of traders selling electrical appliances on Abdulaziz Street confirmed that there is a stagnation in buying and selling in the market, stressing that supply chains and factories have stopped selling and supplying traders until the goods are repriced.
Some have indicated that some wholesalers and factories have stopped orders for dealers despite having contracted them at the old prices, to study the rate of increase in each device, and that the supply is in small quantities for fear of price increases. will rise at any time.
Mr. Abdullah Al-Leithi, a member of the Electrical Equipment Department in the Chamber of Commerce and one of the retailers, explained that prices are still stable, especially since most of the products we sell are Egyptian products, pointing out that the rise will catch up only with imported products, or those manufactured by imported products and expected to rise. Their prices are 20%.
The rise in the price of the dollar also caused a rise in mobile phone prices by 15-20%, in addition to the tendency of each seller to determine the price of the goods himself and set the profit margin that he likes. Some cell phone dealers have confirmed that the companies will not announce the new prices until now, waiting for stability The exchange rate, and on the other hand, we cannot sell our existing devices at the old prices in order not to lose part of the capital not lose, and therefore we will not be able to buy new goods in the same quantity.
While most of the traders on Abdulaziz Street denied that they made discounts or offers during the current time or during Black Friday.
clothes and shoes
It was also confirmed by a number of ready-to-wear and footwear retailers that they were unable to participate in the Black Friday offers, especially as the winter season is in its infancy and the prices of clothing and footwear have risen by around 40% compared to last year , before even the decision to collect the dollar, which was confirmed by members of the General Division The clothes are ready.
They attribute the increase in clothing prices this year to the rise in the dollar against the Egyptian pound, in addition to the weakness of supply chains for raw materials for the garment industry, and the rise in wages and various production inputs, including materials.
While Walid Ibrahim, “the owner of children’s clothing stores, confirmed that most of the winter clothes on display are produced locally, and despite that, we were surprised that the factories sell at exorbitant prices due to the high production costs. 40% in to the details of the required quantities, and the factory owners have confirmed that they are producing the required quantities on demand for fear of stagnation, and therefore, as a seller, I am obliged to sell one product at two prices because I bought at two prices, a price before the flotation and a price after the flotation, and sometimes the customer does not understand it and goes into a quarrel with The seller, and therefore I have to consolidate the price and sell it all at the new price in order not to not to lose capital and can buy new goods.
Regarding the Black Friday deals, he emphasized that it is very difficult to make offers on winter clothes because we are at the beginning of the season, and the offers may be on last year’s models.
While the Shoe Department of the Cairo Chamber of Commerce announced that the prices of winter shoes this season have increased by 30% compared to last year, “Tawheed Anwar” the owner of a shoe factory attributed the high prices this season to several reasons including that we are 60 or 70% dependent on imported raw materials, that is, 70% of the industry is imported, and the idea of the high prices of raw materials and the crises that led to the lack of imports will eventually lead to a reduction in production and an increase in the cost of the final product. During the last period we had stock, and unfortunately the stock is almost finished, and therefore we will have a real problem that will threaten most factories, especially small workshops.
He pointed out that all the factories in Egypt are still working because they have a huge debt, because the shoe industry is based on the term and the liquidation of the factory needs liquidity, and there is no profit.
He explained that getting out of the crisis requires lifting restrictions on the import of production requirements, and supporting the manufacturer, and we are trying to open factories for supplies in Egypt, and we have been asking for it for years.