Yes, it’s the end of 2024, but we keep our fingers on the pulse regarding raw material costs in China! Here’s the monthly update tracking the costs of commonly used raw materials from China for the past year to help you understand the market’s current state. If you or your supplier purchase materials from China for your products, the cost changes you see here impact your bottom line!
Here’s the up-to-date material cost data from China for you as of late December 2024 and the price evolution over the past twelve months – Epoxy resin, cardboard, and colored paper’s costs have jumped up, and lithium batteries and PVC are down a little.
Here are the annual cost changes in CNY:
Here is what the external market analysts we work with attribute these changes to during this past month and the overall monthly cost change of December:
Epoxy Resin (+9.13%)
The epoxy resin market continues its upward trend, driven by rising production costs. Manufacturers have released new pricing that reflects these higher costs, and low-cost options are increasingly scarce.
ABS (+1.79%)
The ABS market held steady with slight firmness in some regions. Positive macroeconomic outlooks and elevated upstream raw material costs have lent support to prices.
Silicone Rubber 110 (+1.02%)
Prices for domestic raw silicone rubber initially dropped early in the week but rebounded later. Major suppliers reduced prices to boost sales, encouraging lower-cost transactions. Pre-sale orders helped stabilize prices, although the overall market weakened slightly due to discounted offers.
Zinc Alloy (+0.37%)
Electrolytic zinc prices fell, with the average market price moving downward. Weak demand and subdued market sentiment contributed to the decline.
Aluminum Alloy (+0.99%)
Spot aluminum prices in the domestic market continued to decline due to weak macroeconomic signals during the policy adjustment period. Alumina prices also dropped slightly, easing cost pressures.
PVC (-2.69%)
The PVC powder market remained sluggish, though there was a slight uptick in price averages. High inventory levels and a muted macroeconomic environment weighed on market activity.
Paper for Color Boxes (+3.69%)
Growth in the double copper paper market has slowed but remains steady. Paper mills maintained a supportive stance, but downstream buyers showed low enthusiasm, adopting a cautious approach to high prices.
Corrugated & Boxboard Paper (+9.84%)
The market maintained a steady rally, with prices climbing consistently. Major paper mills issued successive price hike announcements, ensuring stable market transactions.
Stainless Steel (-1.96%)
Stainless steel prices stayed mostly stable, with minimal fluctuations. Declining futures markets reduced support for spot prices. End-of-year financial considerations helped stabilize the market but also contributed to a slight weakening.
Lithium Batteries (-3.51%)
The national lithium cobalt oxide market remained soft, with transactions primarily driven by real-time demand. Suppliers fulfilled orders amid tepid retail sales, reflecting weak overall market activity.
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 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.
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