It’s time for 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 May 2025 and the price evolution over the past twelve months – all materials have been relatively stable, no large variations in May, although the trend is that Lithium-Ion batteries have become more expensive this year.
Here are this year’s cost changes in CNY, including weekly changes for May 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 May:
Epoxy Resin (-2.50%)
- Market Summary: This week, the epoxy resin market remained largely in a state of consolidation.
- Driving Factors: Strong cost support persisted, but downstream demand remained weak.
- Market Outlook for Next Week: Prices are expected to stay generally stable, with only minor fluctuations.
ABS (-1.68%)
- Market Summary: The ABS market experienced pressure on high prices, though the average price increased compared to last week. However, trading activity weakened.
- Driving Factors: Softening cost support and the end of downstream restocking efforts contributed to declining prices and reduced market activity.
- Market Outlook for Next Week: With costs expected to remain weak and downstream demand cooling, ABS prices may fluctuate and potentially decline.
Silicone Rubber 110 (+0.20%)
- Market Summary: Prices for 110 silicone rubber remained stable this week. Downstream demand for mixed rubber saw a slight improvement.
- Driving Factors: Most downstream enterprises focused on consuming prior inventory after last week’s stockpiling, leading to a cooling in purchasing activity.
- Market Outlook for Next Week: Prices are expected to remain stable with slight fluctuations.
Zinc Alloy (-0.95%)
- Market Summary: The electrolytic zinc market continued to weaken, with the average price falling.
- Driving Factors: An oversupply combined with sluggish demand led to low-level price fluctuations.
- Market Outlook for Next Week: The short-term market is expected to remain volatile. Watch for signs of inventory replenishment in downstream sectors.
Aluminum Alloy (-1.50%)
- Market Summary: Spot aluminum prices dropped early in the week before rebounding, resulting in a higher average price overall.
- Driving Factors: While macroeconomic sentiment softened, demand offered support, leading to a recovery in prices.
- Market Outlook for Next Week: A narrow price rebound followed by fluctuations is expected as macro sentiment remains slightly cooled.
Paper for Color Boxes (-1.29%)
- Market Summary: Double copper paper prices continued to decline this week.
- Driving Factors: Some production lines are under maintenance, but the supply-demand imbalance persists.
- Market Outlook for Next Week: Prices are expected to remain mostly stable, though the average may decline slightly.
Stainless Steel (+1.01%)
- Market Summary: Scrap stainless steel prices declined moderately within a narrow range.
- Driving Factors: Resource shortages, limited liquidity, and hedging activities drove the decline.
- Market Outlook for Next Week: With inverted scrap processing costs, short-term downward pressure is likely to persist.
Lithium-Ion Batteries (-2.85%)
- Market Summary: The lithium battery market remained relatively stable this week.
- Driving Factors: Strong raw material support was driven by halted cobalt exports from the Congo, while emerging demand for digital products offered some price support.
- Market Outlook for Next Week: The market may continue to hold steady, with potential for slight upward momentum depending on supply-side developments.
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.
Leave a Reply