sofeast china raw materials price indicesHere’s the monthly update from Sofeast’s sourcing team who has been 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 that you see here do have an impact on your bottom line!

Here’s the up-to-date material cost data from China for you as of late October 2023 and the price evolution over the past twelve months:

raw material cost evolution since nov 22

Here you can see the individual cost evolution per material over the past year, including the weekly and monthly change for November 2023:

raw material cost evolution since nov 22

Here is what our market analysts attribute these changes to during this past month:

Epoxy Resin (E-51) – decreased 5.94%

Bisphenol A, a key raw material, is exhibiting a limited upward trend in price, while epichlorohydrin, another essential component, remains frozen and upward. The cost support for epoxy resin is narrow and strengthening. However, under shipping pressure, the new resin offerings are stable and small, and buying orders primarily reflect immediate demand, resulting in weak demand-side support. On the supply front, inventory pressure at most production enterprises remains unalleviated, and the industry’s sentiment is generally flat.


ABS AG-15E1 – decreased 2.82%

Despite styrene, a key raw material, experiencing fluctuation during the week, the price of acrylonitrile and butadiene climbed, leading to increased ABS production costs. This compounded the already difficult-to-manage cost pressures faced by petrochemical companies, resulting in a stronger pricing sentiment. Consequently, traders are in a positive mood, and offers at lower prices are becoming less common. However, downstream companies generally experienced a less-active start compared to the previous month, combined with the ending of the raw material procurement season, creating weaker demand and a subsequent drag on the market.


Silicone (110) – increased 0.68%

The domestic 110 raw rubber market remained weak and stable this week, with prices fluctuating between highs and lows. Leading enterprises maintained stable prices throughout the week, benefiting from their strong order-receiving capabilities, but their delivery cycles were relatively long. Due to the pressure of high costs, other domestic production enterprises continued to reduce production, taking advantage of spot supply and lower production costs.


Zinc alloy (Zamak5) – decreased 0.98%

Spot zinc prices experienced a modest increase, and market sentiment regarding shipments remained positive. The trading atmosphere was active, but most participants maintained an inquisitive and cautious stance, taking only limited quantities of goods. Downstream buyers also adopted a just-need approach, acquiring only limited goods, resulting in a weakening of market transactions.


AL alloy ADC 12 – decreased 1.37%

Within the domestic spot market, local cargo holders are exhibiting increased shipping activity, while traders are maintaining their usual shipping patterns. Downstream manufacturers’ demand for goods varies, with northern manufacturers showing consistent demand while southern manufacturers experience a flat trend. Overall, the trading atmosphere is characterized by moderation.


PVC (SG-3) – decreased 3.19%

The primary reason for the market’s weakness lies in the deteriorating fundamentals, coupled with expectations of further weakening in the future. On the supply side, PVC powder maintenance activities have been reduced, leading to an increase in industry load rates. On the demand side, downstream replenishment remains low, transaction volumes are subdued, and exports are stable. Social inventories increased this week, further weakening the market’s fundamentals. 


Paper for color box (157g) – increased 0.13%


Paper for carton (AA120G) – increased 0.46%

Cost expectations are weakening, providing limited support for the corrugated paper market. The outlook for waste yellow board paper is also expected to weaken, primarily due to the end of the peak season and reduced demand for raw materials from downstream products, which is hindering the price trend of raw materials.

Overall, considering the recent key factors influencing the corrugated paper market, December is still within the traditional industry’s peak season, driven by holiday orders, leading to steady growth in demand.


Stainless steel (304/2B 0.4MM) – decreased 6.27%

The domestic scrap stainless steel market remained in a downward trajectory throughout the statistical period. The persistent decline in futures prices further dampened sentiment in the waste stainless steel market. As steel mills’ buying enthusiasm waned and the prices of related products dragged down the scrap stainless steel market, downward pressure intensified, leading to active adjustments in receiving prices. However, the rapid market decline failed to curb cargo holders’ willingness to ship, resulting in a generally subdued trading atmosphere.


Battery (lithium cobalt oxides) – decreased 4.44%

The national lithium cobalt acid market is experiencing weakness due to the lack of support from upstream lithium cobalt prices.


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.

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