We’ve been tracking the costs of China raw materials since early 2021 in order for importers to have a clearer idea of the market in China and allow you to plan ahead if prices for your essential materials seem to be on the up (for instance, you may decide to buy up some inventory in advance to insulate yourself from further rises).
Here’s the up-to-date material cost data from China for you as of late Feb 2022:
You can see that most materials’ costs have been fairly stable for some months with small decreases in some cases, however, batteries are spiking.
- ABS (AG-15E1宁波台化), decreased by 1.93% because market demand is not as high as expected after the CNY holiday.
- Silicone (110), increased by 2.46% as raw material DMC increased and the demand has remained high.
- Zinc alloy (Zamak5), decreased by 2.18% as the market demand is not as high as expected after the CNY holiday.
- PVC (新疆天业的SG-3), decreased by 6.13% as the cost of crude oil decreased.
- Stainless steel (304/2B 0.4MM)太原, increased by 2.68% as the price of future derivatives increased and will likely keep increasing next week.
- Batteries (lithium cobalt oxides) have increased the most with a 10.99% increase.
Market demand is still strong and outstrips supply. The cost is likely to increase further next week.
Note: The crisis in Ukraine could increase raw material costs such as crude oil which would likely have a knock-on effect on materials like polymers, etc. We will keep an eye on this.
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.