With the price rises in raw materials and the government’s requirement of energy labels for household appliances this year, the manufacturers have stopped trying to under-price the competition and focused on developing products to win back the declining the market shares.

  This year the cost of making an air conditioner will be up 20 percent as raw material costs make up one-third of the total cost.The iron and steel price has risen 70 percent this year compared with the price in last October. The price of plastics is up 73.9 percent and that of galvanization plate, up 39 percent and copper,up 1,600 yuan (about 180 US dollars) per ton.

  As the hot season for selling air conditioners is drawing near,both domestic and overseas producers have worked to increase their sale prices.