As we start the new year and head into Chinese New Year, 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 January 2025 and the price evolution over the past twelve months – modest decreases in the costs of epoxy resin, silicone, and zinc alloy were reported at the end of January.
Here are the annual cost changes in CNY, including weekly changes for January 25:
Here is what the external market analysts we work with attribute these changes to during this past month and the overall monthly cost change in the last week of January:
Epoxy Resin (-1.45%)
The epoxy resin market stabilized this week following a modest price increase. Despite weak supply and demand dynamics, this change was driven by increased production costs. Moving forward, prices are expected to remain steady in the domestic market next week.
ABS (-0.27%)
ABS market prices were stable this week, with slight increases in some areas. The rise in crude oil prices and strong trends in upstream raw materials provided significant cost support, reinforcing market stability. Next week, ABS prices are expected to remain firm due to high production costs.
Silicone Rubber 110 (-2.16%)
The market for silicone rubber (110 grade) stabilized this week after a sharp decline last week. Downstream replenishment activities and improved performance among major suppliers contributed to the price stabilization. This trend is expected to continue in the coming week.
Zinc Alloy (-7.99%)
Zinc alloy prices declined this week due to falling electrolytic zinc prices and reduced market demand. The ongoing imbalance between strong supply and weak demand is expected to exert further downward pressure on zinc prices in the near term.
Aluminum Alloy (+1.96%)
Aluminum prices rose this week, crossing the 20,000 CNY mark, driven by increased demand for replenishment. However, as stock support cools, aluminum prices may face downward pressure in the upcoming week.
PVC (+1.15%)
PVC powder prices recovered slightly this week, with the price center moving upward. This shift was influenced by improved commodity sentiment and market dynamics. However, with the Spring Festival approaching, seasonal weakening of fundamentals may result in limited market activity. Next week, the PVC market is expected to fluctuate within a narrow range.
Paper for Color Boxes (no change)
The double-coated paper market remained stable this week. Factors influencing this stability include consistent support from paper mills, persistent cost pressures on dealers, and strong upstream pulp prices. However, downstream purchasing slowed near the holiday season, reducing demand-side support. Prices are expected to remain stable in the near term.
Corrugated & Boxboard Paper (-0.50%)
Carton paper prices showed stability this week, with minor local declines. Flexible pricing adjustments by small and medium-sized paper mills contributed to this trend. The market is likely to maintain overall stability in the coming week.
Stainless Steel (-0.17%)
Stainless steel prices were largely stable this week, with some slight weakening. Market movement was driven by a combination of futures market rallies and tightening nickel supply. As trading volume slows, price volatility is expected to remain limited next week.
Lithium Batteries (no change)
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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