Oil prices rise, memory prices soar: Home appliance industry begins price hike in April, with increases up to 20%

Copper prices rise 18%, plastics increase 51%, passing through to end costs.

The Middle East conflict drives up oil prices, combined with AI data center expansion triggering a surge in storage chip prices, gradually passing through to the home appliance industry.

A reporter from First Financial learned that starting April 1, some home appliance companies have raised the supply prices of certain models of TVs, air conditioners, refrigerators, and washing machines, with increases ranging from 2% to 10%, and large kitchen appliances like range hoods and stoves seeing increases of about 10%-20%.

Since retailers are still selling existing inventory, the “perceived” price increase at the end retail level is not yet obvious, but it is expected to gradually become apparent this month. Some companies and retailers worry that price hikes will add more pressure to a market with sluggish growth, and analysts expect market and industry segmentation to occur.

Manufacturers: Rising costs of oil, memory, and others lead to price increases

A person involved with Skyworth’s white goods business told First Financial that from April 1, the supply prices of refrigerators, washing machines, and air conditioners to retailers have all been increased by about 10%. The main reason is that in the first quarter of this year, prices of non-ferrous metals like copper and aluminum rose, followed by the Middle East war significantly pushing up prices of crude oil and other bulk raw materials and chemicals. These costs are being passed down, approaching about 10% of the cost of home appliances, prompting companies to raise prices accordingly by about 10%.

According to data provided by the above source, compared to the average prices in 2025, at the end of March 2026, copper was priced at 95,195 yuan/ton, up 18.6%; electrolytic aluminum at 24,530 yuan/ton, up 18.85%; black raw material M20S at 19,200 yuan/ton, up 20.77%; ABS plastic at 15,500 yuan/ton, up 51.7%; and copolymer PP at 9,450 yuan/ton, up 26.47%.

On the export side, besides material costs increasing, the appreciation of the RMB this year has also increased pressure on exports of white goods, which are likely to see price hikes. The relevant Skyworth personnel believe that in Q4 last year, competition in the home appliance industry intensified, and industry profits declined; now, companies are becoming more rational.

A person from Hisense’s South China region told reporters that from February to March, prices of various TV series have been gradually increased, with price hikes of 3%-10% based on cost calculations. The main reason is that, influenced by AI development, memory chips and storage prices in the TV industry have surged sharply—DDR prices have increased tenfold from January 2025 to mid-March this year, NAND prices doubled from December 2025 to January 2026, and NAND prices are expected to continue rising in Q2. Meanwhile, the Middle East war has pushed up prices of petrochemical raw materials, and transportation costs are also rising. “In the future, structural adjustments are necessary, focusing on high-end and innovative products.”

“Prices of TVs, refrigerators, washing machines, and air conditioners have all increased, roughly by 2%-10%. The market is expected to go through a gradual adaptation process, and retail prices may face some pressure at the beginning of the month,” said a South China TCL representative. Retailers’ purchase prices have already increased, and retail terminal prices are expected to gradually rise as well. “But not all models; lower-end discount models have more obvious price increases, while some mid-to-high-end models see less change.”

In this round of home appliance price hikes, different companies, products, and models vary. The Skyworth insider mentioned that, in terms of costs, refrigerators have increased by 8%-10%, washing machines by 6%-8%, and air conditioners by 5%-6%. The higher increase in refrigerator costs is due to the extensive use of chemical materials in components like inner liners, drawers, and end caps. Unless profits were very high before, companies with lower profit margins need to raise prices appropriately to cover increased costs and ensure normal operations. Not all costs are fully passed on; products with good margins see smaller increases.

Kitchen appliances are also under price pressure this year. A kitchen small appliance company official told reporters that three main factors are at play: first, most Chinese home appliance companies have export businesses, and the RMB has appreciated this year; second, raw material prices have surged sharply; third, domestic inflation is evident.

Some small companies remain cautious about raising prices. Li Xiaoxiong, General Manager of Hanmeichi China Marketing Center, told First Financial that this round of home appliance price increases is due to rising raw material costs, involving TVs, refrigerators, washing machines, air conditioners, large kitchen appliances, and lighting. The industry has long been competitive and strained, and rising material costs have made brands that have been fiercely competing now appear more “friendly” in terms of price increases. But for small and medium-sized enterprises still developing, blindly following the trend could lead to greater losses.

Retailers: Strong momentum for price hikes, implementation takes time

Currently, the prices at home appliance retail terminals are not yet significantly affected, with the market showing a “loud noise but little rain” situation.

A home appliance retailer in Central China told First Financial that due to weak market demand, actual prices have not yet changed noticeably.

“Just talking about price hikes. We are still selling from last year’s inventory. All brands are preparing to raise prices, but the goods purchased in February probably haven’t increased in price, and the market in March wasn’t very good, so whether prices will actually rise later remains to be seen,” said a retailer in East China.

A retailer in Northwest China revealed: several brands have already announced price increases, but Midea has not. Gree air conditioners have already started the “peak season,” with additional policies offered, but no price hikes yet. Everyone is indeed talking about raising prices, but actual implementation in order-taking has not yet begun.

“This year, home appliance costs have increased. It’s probably because last year at the end of the year, we stocked a large amount of goods to meet annual targets, so we haven’t placed many new orders with factories yet. In fact, we are still selling low-price products, so the price increases aren’t fully reflected,” said the Northwest retailer.

He believes that the main reason for the increase in order prices is related to rises in copper, chips, and other raw materials. “As for how long this round of price hikes will last, it will depend on the prices of these raw materials. For example, storage chip prices recently fell, so TV price increases might slow down a bit, but copper prices haven’t shown signs of dropping yet.”

With the market still weak, everyone is testing the response, worried that price hikes will add more pressure. The retailer said some brands have not committed to raising prices. Recently, Midea Group Chairman and President Fang Hongbo visited home appliance retailers intensively in western Guangdong and Fujian, leading industry speculation that he is exploring whether there is room to reduce costs in the distribution chain.

“We, as channels, are also trying to reduce costs and minimize losses, hoping to ease the impact of this round of price increases on consumer demand,” the retailer said. He believes that this price hike will favor factories, brands, and channels with strong cost control, while brands unable to control costs will find it harder to survive.

Analysts: This round of price increases will accelerate market segmentation

A senior industry observer believes that the phased price increase in home appliances in 2026 is unavoidable, as oil, plastics, copper, and other non-ferrous metals have entered a new cycle of rising prices. Moreover, due to recent trends of “de-stocking” or even “zero inventory,” the transmission speed to end retail markets has become faster, likely forming a price fluctuation zone within a short period. It is expected to enter a “calm period” around May, gradually reducing the perception of price increases.

Wang Hongji, head of China home appliance research at NIQ GfK, also analyzed for First Financial that some manufacturers have announced price increases starting April 1 for products on sale. Home appliance products are indeed facing upward pressure from bulk raw material prices, providing a motive for price hikes. However, demand-side issues—weak demand—are also prominent. Since 2026, in the first 12 weeks, the overall retail sales of home appliances declined by 13.9% year-on-year, and retail volume fell by 17.4%, indicating significant demand pressure. From a market competition perspective, insufficient demand will lead to fierce price competition, making it difficult for manufacturers to raise prices significantly. This situation will accelerate industry reshuffling, with leading brands that have comprehensive response capabilities and high-end market layouts better positioned to cope with the current “dilemma.”

“Weak consumption makes companies hesitant to raise prices,” said He Jinming, Vice President of AVC (All View Cloud), citing the air conditioning industry as an example. Rising costs of bulk raw materials and copper give strong motivation for price increases, and the industry’s profitability was under pressure in 2025. Companies also need to improve profits; however, weak retail demand and difficulty in raising prices complicate matters. Leading brands like Gree do not raise prices and provide channel subsidies of 5%, putting pressure on others. Meanwhile, online platforms are catering to consumer downgrade trends, stimulating consumption with large single items and low-priced goods. It is estimated that factory prices for air conditioners will increase by 5%-8% after April, with an average increase of about 100-150 yuan.

Zhao Zhiwei, Vice President of AVC and General Manager of the Kitchen & Bathroom and Home Furnishings division, told reporters that after April 1, most kitchen appliances are trending toward price increases, especially range hoods and stoves, with hikes of 10%-20%. The reasons include rising energy and bulk raw material costs increasing manufacturing and transportation expenses; companies adjusting product structures in the saturated market, pursuing higher-end products; and policy fluctuations.

From an industry impact perspective, first, the industry structure will shift upward, with more high-end and high-quality products; second, to match current prices with consumer demand, companies will strengthen R&D and supply chain management; third, industry reshuffling will accelerate, with some lesser brands exiting, leading to greater industry concentration; fourth, short-term demand may be affected, but long-term development will be healthier.

He Jinming also believes that this price increase may accelerate market segmentation. Demand-wise, it shows a K-shaped divergence: price hikes have little impact on overall volume, but at the same percentage increase, mid-range products are most affected, while low-end products have small price gaps and high-end consumers are less sensitive to price. On the supply side, the Matthew effect intensifies, with uncertain factors having minimal impact on top-tier companies and the long tail struggling more. Distribution channels will also differentiate and evolve, with the importance of experience and service increasingly emphasized.

The senior industry observer predicted that after a brief window of price increases, the home appliance market will gradually return to calm, and this year’s home appliance consumption market will continue to develop along the path of quality improvement and efficiency.