Plastic, Silicone, Steel, and Others: Updated China Raw Materials Costs (late Nov ’24)

Here’s the monthly update tracking the costs of commonly used raw materials from China for the past year to help you understand where the market is right now. If you or your supplier are purchasing 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 November 2024 and the price evolution over the past twelve months – silicone had a reasonable decrease, while ABS, Zinc Alloy, and paper for cartons increased just a little.

Here you can see the individual cost evolution per material over the past year, including the weekly and monthly changes up to November 2024 with costs in CNY:

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 November:

Epoxy Resin (-0.64%)

This week, the epoxy resin market has remained stable, though market activity has been subdued due to weakened cost support and limited demand. Here’s a closer look at the current dynamics:

• Supply: Factory operations were stable.
• Demand: Weak buyer interest kept transactions limited.
• Cost: Bisphenol A remained steady, while epichlorohydrin prices edged higher, offering mild support.
• Outlook: Small price fluctuations are expected in the short term.

ABS (+2.22%)

This week, ABS market prices fluctuated slightly as weak supply-demand dynamics continued to dominate. Here’s a snapshot:

• Supply: Ample availability; agents faced inventory pressures.
• Demand: Downstream buyers remained cautious, limiting large-volume purchases.
• Cost: Prices rose early in the week but retreated amid raw material price volatility.
• Outlook: Limited price changes expected as the market remains balanced.

Silicone Rubber 110 (-4.61%)

Raw rubber prices rose narrowly this week, driven by a reduction in supply pressure and firmer cost conditions. Key details:

• Supply: Pre-sale orders increased, reducing overall inventory pressure.
• Demand: Low-level replenishment remained the focus for downstream buyers.
• Cost: Stabilization of costs boosted price expectations.
• Outlook: Modest price increases are likely in the short term.

Zinc Alloy (+3%)

Zinc prices experienced slight fluctuations this week, with market stability prevailing. A closer look:

• Supply: Spot availability remained steady, with consistent shipments.
• Demand: Just-in-time purchases dominated, limiting major market shifts.
• Cost: Futures price trends mid-week helped bolster market sentiment.
• Outlook: Short-term price gains are possible but may cool later.

Aluminum Alloy (-1.46%)

The domestic aluminum market showed signs of cooling this week, as demand slowed and inventory levels rose. Highlights include:

• Supply: Increased backlog due to reduced downstream consumption.
• Demand: Tepid terminal demand pressured spot prices.
• Cost: Weak macroeconomic conditions contributed to declines.
• Outlook: Prices may continue to trend downward.

PVC (-3.05%)

This week, the PVC powder market softened, with prices edging lower due to cautious downstream buying. Key insights:

• Supply: Availability remained sufficient.
• Demand: Downstream buyers focused on small replenishments at low prices.
• Cost: Low raw material prices provided limited support.
• Outlook: Market activity is expected to remain subdued.

Paper for Color Boxes (-0.88%)

Double copper paper prices narrowed their decline this week, supported by steady mill operations and reduced supply pressures. Details include:

• Supply: Repairs at major production lines reduced availability in some areas.
• Demand: Stable interest from downstream buyers, but enthusiasm remained muted.
• Cost: Upstream pulp prices stayed stable, offering limited support.
• Outlook: Narrow price fluctuations expected in the short term.

Corrugated & Boxboard Paper (+3.53)

The corrugated and boxboard paper markets strengthened this week, with prices supported by upstream adjustments and steady orders. Breakdown:

• Supply: Mills raised prices, with inventory levels remaining low.
• Demand: Stable downstream orders, coupled with improved export activity.
• Cost: Cost-side pressures were moderate.
• Outlook: Further price increases are likely in the near term.

Stainless Steel (-0.07)

Stainless steel prices continued to weaken this week as profits declined and production slowed. Key factors:

• Supply: Reduced production efforts eased supply pressure.
• Demand: Low-priced inventory saw increased market absorption.
• Cost: Weak margins weighed on prices.
• Outlook: Continued downward price movement is expected.

Lithium Batteries (-1.72)

The positive material market saw mixed trends this week as rising lithium salt prices provided some cost support. Highlights:

• Supply: Upstream lithium salt prices strengthened.
• Demand: Buying slowed for some material categories under price pressure.
• Cost: Cost support was marginal but present.
• Outlook: Price loosening for select products may continue.

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.