Here’s an August update to add to our posts on the costs of China raw materials this year (2021) when many importers have been dismayed by rising raw material prices. For this reason, we’re trying to give you some visibility over the costs every couple of months or so, so you’re able to understand the landscape here and plan ahead.
We’re tracking the raw material costs for some key materials and here’s the up-to-date data for you:
As you can see, if you examine the tail end of the graph, prices have somewhat stabilised although at a higher cost than a year ago (in some cases like silicone and ABS, much higher).
Some key observations this month:
- Brass (Φ8-20T2): lower demand (it’s the traditional off-season).
- Paper for color boxes: costs continue to derease and this trend might continue for now.
- Epoxy Resin: cost has increased because some of the raw materials (epoxy chloropropane & bisphenol A) got pricier.
How to combat the 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.