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 October ’21:
These are the costs as of 10/08/21, so, just after the ‘Golden Week’ holiday in China.
We’ve already remarked how we’ve seen a stabilization of certain material costs in recent months, and you can see that from the graph above. However, there are still some remarks that are good to know:
- Silicone has kept increasing in cost and will probably increase even further over the next month or so.
- Both Brass and Stainless steel’s prices increased slightly, we aren’t sure about the exact reason, although it may be because of the power cuts in China (heavy industry has been impacted by energy shortages, therefore there may be a lower supply).
- Paper for carton: the cost has increased due to the power cuts which have negatively affected supply.
- ABS has increased slightly due to the international petroleum price increase. It might still increase in the short term.
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.