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Firms hike washer, fridge prices

"It's impossible not to raise prices because the cost of steel has jumped more than 20 percent over the past six months."

Steven Chen, manager of Taiwan Kolin Co

Battered by surging material costs, major manufacturers of consumer-electronics have decided to raise retail prices of washing machines and refrigerators by around 5 percent starting next month.

The price hikes would place an extra of NT$1,000 to NT$2,000 per unit, according to the companies, which include Panasonic, Kolin, Sanyo and Teco.

Chen Shih-chang (陳世昌), general manager of Panasonic Consumer Sales Taiwan (台松電販), said Panasonic would start replacing price tags at the end of this month to reflect higher materials costs.

Other first-tier competitors also confirmed that they would follow suit by the year-end.

"It's impossible not to raise prices because the cost of steel has jumped more than 20 percent over the past six months," said Steven Chen (陳世明), manager of Taiwan Kolin Co (歌林).

According to a report released on Tuesday by the Directorate General of Budget, Accounting and Statistics (DGBAS), the import price index last month increased by a record-high 13.98 percent year-on-year, representing the biggest rise since December 1990.

Prices for imported basic metals and related products last month soared by 37.44 percent from the same period last year, the report said.

This is not the first time that home-appliance manufacturers have raised prices this year. Kolin, Sanyo Electric Co Taiwan (三洋電機) and Teco Electric & Machinery Co (東元電機) hiked the prices for their air conditioners, washing machines and refrigerators by 3 percent during the summer.

Sanyo spokesman Liao Shen-hsu (廖慎續) said steel, plastics and copper costs have been climbing nonstop since late last year, putting a lot of pressure on local manufacturers and making another wave of price hikes inevitable.

"To remain competitive, we will absorb some of the rising costs and pass some on in our retail prices," he said.

Air conditioner prices remain unchanged, since it is the off-season for such appliances, he said.

There is some relief in sight for consumers, however, as hypermarkets have promised not raise their prices on washing machines and fridges before next Lunar New Year in February.

"The decision by these major manufacturers to hike prices will harm consumers' interests," said Fiona Wang (王彤芳), marketing manager of RT-Mart (大潤發).

Higher material costs should be reflected in the prices of new products launched next year, instead of raising prices now, she said.

Discounters said consumers can find some good deals now since Carrefour Taiwan, RT-Mart and Far Eastern Geant (愛買吉安) are all holding their annual sales this month.

In related news, Minister of Economic Affairs Ho Mei-yueh (何美玥) said yesterday that the ministry will not raise electric and water prices before the end of the year.

Ho made the remark during a legislative session yesterday.

She said the ministry will not make the adjustment before the formula to hike the prices is proposed by related departments.
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