This year (2021) we’ve been tracking the costs of China raw materials in order for importers to have a clearer idea of the market in China and allow you to plan ahead if prices for your essential materials seem to be on the up (for instance, you may decide to buy up some inventory in advance to insulate yourself from further rises).
We’re tracking the raw material costs for some key materials and here’s the up-to-date data for you as of early December ’21:
Here are some notes on the raw materials costs right now in December 2021:
- The spike in silicone prices in October has passed and the cost has settled more these days.
- Epoxy Resin (E-51): the price has fallen due to lower market demand, while in fact it was expected to keep increasing.
- Zinc alloy（Zamak5): price increased a little and dipped again, mostly because of changes on the supply side:
– Europe’s largest zinc mine suspended production due to irrigation problems
– Glencore’s zinc sulfide production line in Italy will be in maintenance soon
– London zinc inventories continue to fall
- Paper for carton (AA 120G): the price for virgin paper has increased a little, but at the same time, the cost of recycled paper price decreased and market demand seems weak.
- Battery (lithium cobalt oxides): price increased and remains a lot higher than the start of 2021. This is connected to the increased cost of batteries’ constituent raw material NCM (Lithium Nickel Manganese Cobalt Oxide) which rose as its global production fell.
- ABS (AG-15E1): price decreased as chemical commodities’ prices decreased in line with falling crude oil prices.
- The cost of stainless steel, brass, and aluminum have stabilized, but remain higher than at the start of the year.
How to combat the rising costs?
Explore cost-reducing tips in this post: Rising Raw Material Prices: What Strategy To Follow? (6 Approaches).
What to do if your Chinese supplier suddenly tells you that material costs have risen: How To Cooperate With Your Chinese Supplier, Part 16: Bad News from China, Raw Material Prices Just Increased!
If your supplier just isn’t working out, maybe sourcing a new supplier will help you find one who can offer you better prices and more? If so, there’s no need to fear switching from your current supplier to a new one if you’re prepared: How To Switch To A Newer, Better Chinese Manufacturer? [eBook].
We hope this is helpful. Our mission at Sofeast is to help importers have transparency in their supply chain and to give them more control. And this information is critical to have some visibility into your manufacturer’s costing.
By the way, you can always contact us if you have any questions about whether a manufacturer’s quote is reasonable.