Jörg Ströhmann of Marmor Ströhmann International GmbH & Co. KG in Hofheim-Wallau works in high-quality interior finishing.

 

Price fluctuations make business with natural stone from China increasingly unpredictable, says Jörg Ströhmann.

 

STEIN: Why are prices now rising so rapidly?

Jörg Ströhmann: The importers give various answers like rising labour and freight costs. The grants have been stopped and environmental protection regulations introduced in China, too. The situation for us is certainly very unsatisfactory, as our customers think we are untrustworthy if we constantly increase prices.

 

STEIN: How much have the prices for Chinese stones increased?

Jörg Ströhmann: The price rise of our supplier Keinarth was almost 20 per cent from April to June 2007. Some of the others raised their prices by 7 to 10 per cent in July 2007 alone.

 

STEIN: Which products are particularly affected?

Jörg Ströhmann: For us as a natural stone company, it is mainly the finished goods. Everything that must be made by hand, for example, is affected by rising labour costs. We no longer sell tiles; the builders’ merchants have long since taken over here.

 

STEIN: What effects do you notice on the German-speaking market?

Jörg Ströhmann: The customers cannot understand why they should suddenly wait longer for their orders. No one can now guarantee delivery times. The containers very often just remain at the port and wait for the next ship. We as trader cannot accept this, as we must keep our word, i.e. deliver at the stated time. This is often guaranteed by contract and we must then obtain replacements at our cost.

 

STEIN: How will things continue?

Jörg Ströhmann: According to the suppliers, prices will carry on increasing due to the very large demand and rising energy costs. It is almost impossible for us to prepare a reliable quotation. We can’t write “valid for 30 days only” on our quotation.

 

STEIN: What determines the prices – foreign exchange rate, "political" factors or real costs?

Jörg Ströhmann: First the dollar prices determine the market – they are currently falling, but the other costs are rising at the same time. China is no longer promoting natural stone trade as much as at the beginning. The carriers no longer want to transport heavy natural stone and prefer other goods that are lighter to handle.

 

STEIN: Is "cost transparency" developing?

Jörg Ströhmann: There is no other term for it; China kept the costs down for years, as all producers received grants. Everything was done for exports. The main thing was to be the cheapest supplier and drive all the others out of the markets. This can only be achieved with grants – at the expense of people and nature. Things are now balancing out again and real prices are emerging. The prices were always too cheap, which is now being penalized. We don’t want to stand here and wag our finger or criticize countries and systems we don’t really know. We just want to stimulate thinking and initiate discussion on whether it must always be the cheapest. We have encouraged the system by constantly buying there. This is what we get for it. Producers in Europe are fighting and will hopefully stay in business for a long time. Quality has established itself in other markets, perhaps common sense as well. Our circle is here in Europe, not in China. Our customers are also here. There are other things in life besides “mean is cool”.