In the first half of 2021, the national building materials and home furnishing market will be full of vitality

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BHI is the abbreviation of National Building Materials and Home Furnishing Prosperity Index. It is a prosperity index of building materials and home furnishing terminal stores jointly issued by the Circulation Industry Development Department of the Ministry of Commerce and the China Building Materials Circulation Association. BHI reflects the prosperity and market trend of building materials and home decoration materials.

Figure 1: National Building Materials Home Furnishing Index (BHI)

Data source: Department of Circulation Industry Development, Ministry of Commerce, China Building Materials Circulation Association

2021The Spring Festival holiday of 2021 falls in mid-February. The operation of the home furnishing market has a greater impact, and the market demand is relatively flat. BHI has fallen back, down 4.96 points from January.

In March after the Spring Festival, the domestic building materials and home furnishing market ushered in a "warm spring" market, the consumer demand in the building materials and home furnishing industry was released, and the market recovery was significantly accelerated. In March, BHI rose sharply, an increase from February 23.03 percent.

The national home improvement market was active in April. Affected directly by the real estate market, the national building materials and home furnishing market continued its steady growth in April during the traditional peak season, and consumer demand remained active. Secondly, in April, the domestic "employment rate index" rose the first month-on-month, rising by 69.65 percentage points, reflecting the strengthening of market confidence under the macroeconomic situation.

Affected by seasonal peak season factors in May, the national building materials and home furnishing market welcomed the "Red May" market, BHI continued to climb, up 15.51 points from April, and has maintained an upward trend for three consecutive months . Secondly, the growth rate of transaction volume in the national new housing market slowed down in May, and the price performance of the second-hand housing market remained firm. The national building materials and home furnishing market, which is closely related to the real estate market, also continued its peak season in May.

June was hot and rainy, and the off-season market of the national building materials and home furnishing market was highlighted. Superimposed by the impact of the sudden outbreak in Guangdong, BHI fell after rising for three consecutive months, down 9.04 points month-on-month.

With the national economy showing a steady and positive trend, the national building materials and home furnishing market showed restorative growth in the first half of the year, showing new vitality. Sales in the first half of the year rose by 74.72% year-on-year. In addition, after experiencing the baptism of the epidemic, the pace of industry transformation has accelerated. During the anti-epidemic period at home, the flow of people in home furnishing stores has fallen precipitously, and various companies are actively deploying online marketing models such as live broadcast e-commerce to attract traffic, and the industry's online and offline new retail integration has accelerated.

In the first half of the year, the overall improvement of the home furnishing market effectively drove the development of upstream raw material polyurethane. Polyurethane soft foam can be used in the production of household products such as mattresses, sofas, pillows and seats. Generally speaking, polyurethane products are widely used in the home furnishing market, so the development and changes of the home furnishing market will affect the development of polyurethane to a certain extent.