Sofeast’s team continues to monitor the cost evolution of key raw materials in China, helping importers and manufacturers stay informed.
This latest update from the market analysts we work with reflects changes in RMB costs and percentages over the past year through August 27, 2026.
Click the charts to expand them.
Monthly China Raw Material Cost Changes – August 2026
The market was mixed during August. Silicone recorded the largest increase among the conventional manufacturing materials we track, while zinc alloy and copper also moved higher.
At the other end of the scale, battery materials continued their recent decline, and stainless steel edged lower.
Copper (电解铜) – Monthly Change: +3.67%
Copper continued its upward movement during August and finished the month with a further 1.30% increase during the latest week.
- Drivers
Copper inventories fell unexpectedly, helping push both copper prices and market premiums higher. - Outlook (next week)
Spot copper prices are expected to remain relatively firm and at elevated levels in the short term.
ABS (AG-15E1 宁波台化) – Monthly Change: +3.25%
ABS prices increased moderately during August, although trading volumes remained relatively subdued.
- Drivers
Higher average production costs and growing expectations of production cuts helped support ABS prices despite relatively quiet market activity. - Outlook (next week)
Costs may retreat slightly from their recent highs, but supply is also expected to tighten. As a result, ABS prices may remain relatively stable rather than moving strongly in either direction.
Silicone (110) – Monthly Change: +10.66%
Silicone recorded the largest monthly increase among the main manufacturing materials tracked in this update, continuing to rise through the final weeks of August.
The latest weekly increase was 1.92%.
- Drivers
The price of DMC raw material continued to rise, adding further cost pressure to 110 silicone rubber. Prices for downstream compounded rubber products also increased, allowing some of these higher raw material costs to move through the supply chain more easily. - Outlook (next week)
Cost-side support for the silicone rubber market remains strong, meaning prices may continue to be supported in the short term.
Zinc Alloy (Zamak 5) – Monthly Change: +5.83%
Zinc alloy prices rose noticeably during August, including a 2.85% increase in the latest week.
- Drivers
Electrolytic zinc prices fluctuated upward during the week, resulting in a higher average market price and supporting zinc alloy costs. - Outlook (next week)
Market sentiment may weaken after the recent increase, so buyers should be aware of the possibility of a short-term price correction.
Aluminum Alloy (ADC 12, Jiangsu) – Monthly Change: -0.34%
Aluminum alloy prices were effectively flat during August, ending the month only slightly below their July level.
However, prices strengthened by around 0.52% during the latest week.
- Drivers
Aluminum prices fluctuated upward toward the end of the month as market sentiment improved while participants waited for further macroeconomic guidance. - Outlook (next week)
The market will remain sensitive to broader economic developments, but there is still some expectation that aluminum prices could move higher in the short term.
Paper for Color Boxes (157 g, Double-Coated) – Monthly Change: 0.00%
The tracked price of double-coated paper used for color boxes remained unchanged during August.
- Drivers
Demand downstream remains relatively weak, while changes on both the supply and demand sides have been limited. Paper mills have therefore generally focused on maintaining prices and accepting orders rather than making significant price adjustments. - Outlook (next week)
The market is expected to remain broadly stable. Dealers are likely to continue following existing pricing policies while weak downstream demand limits opportunities for price increases.
Stainless Steel (304/2B 0.4 mm, Taiyuan) – Monthly Change: -1.78%
Stainless steel prices declined slightly during August, including a 1.19% fall during the latest week.
- Drivers
The spot market continued to fluctuate within a relatively narrow range. Prices for 304 cold-rolled products initially increased before falling back, leaving the overall market slightly weaker. - Outlook (next week)
There are expectations that demand could recover, but there are currently few concrete signs of this happening. In the meantime, stainless steel prices may remain relatively weak.
Battery Materials (Lithium Cobalt Oxides) – Monthly Change: -8.00%
Battery materials recorded the largest monthly decline in this update, continuing the downward trend seen over recent months.
Prices fell by a further 0.80% during the latest week.
- Drivers
Precursor prices have fallen, while the market remains divided over the future demand outlook for ternary battery materials. Some participants expect overseas ternary demand to remain strong, while others expect lithium iron phosphate (LFP) chemistry to take an increasingly dominant share of the market.
Demand for high-nickel products does, however, remain present in higher-end applications. - Outlook
The market remains uncertain. Demand for high-nickel materials provides some support, but changing battery chemistry preferences and weaker precursor prices could continue to limit upward pressure in the near term.
What stands out this month?
August’s figures show that there is no single direction for Chinese raw material costs.
Silicone has rebounded particularly strongly, increasing by more than 10% since July, while zinc alloy and copper are also noticeably higher.
At the same time, lithium cobalt oxide battery materials have continued to fall, and packaging paper remains essentially unchanged.
For importers, this is useful context when reviewing supplier quotations. A general claim that “raw material prices have increased” does not necessarily reflect what is happening across every material in a product’s BOM.
How to combat 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 provide importers with transparency in their supply chain and to give them greater control. And this information is crucial for gaining 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 or not.
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