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 October 2024 and the price evolution over the past twelve months – this month epoxy resin, zinc alloy, and lithium batteries all had very modest increases.
Here you can see the individual cost evolution per material over the past year, including the weekly and monthly changes for October 2024 with costs in CNY:
Here is what the external market analysts we work with attribute these changes to during this past month and the monthly cost change:
Epoxy Resin – increased by 3.93%
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: Production has primarily focused on fulfilling previous orders. Spot inventory levels are manageable, with no significant supply shortages reported. New orders have faced slow processing, keeping supply relatively steady.
Demand: Terminal demand remains weak, with limited buying interest from downstream sectors. Most buyers are adopting a wait-and-see approach, with actual purchasing volumes expected to stay low unless critical needs arise.
Cost: Bisphenol A is expected to hit a bottoming trend next week, with prices anticipated to remain stable. Meanwhile, epichlorohydrin prices show signs of weakening, which could slightly reduce raw material costs.
Outlook: While profitability is stable, overall demand is projected to stay low, with the market outlook dependent on actual purchase volumes in the near term.
ABS (Acrylonitrile Butadiene Styrene) – increased by 1.42%
This week, the ABS market experienced some price fluctuations, with prices rising initially before declining. Currently, the market remains in a weak state with limited transaction volumes.
Supply: Market supply is expected to remain loose, with adequate availability across price ranges. No significant shifts in transaction volume suggest supply stability in the short term.
Demand: The upcoming demand season may not see typical procurement volumes, as some large downstream buyers are reducing their purchasing scale. Demand fundamentals remain weak, with downstream sectors adopting a conservative approach.
Cost: Domestic ABS materials are priced between 10,650–11,800 yuan/ton, with low- and high-end prices falling by around 100 yuan/ton since last Thursday. Upstream raw material prices continue to operate weakly, placing minimal upward cost pressure on ABS prices.
Outlook: Given weak fundamentals and anticipated declines in demand, the ABS market is likely to remain subdued in the short term, with no significant price upturn expected.
Silicone – decreased by 0.07%
This week, the silicone market experienced a brief price increase followed by a decline, with manufacturers displaying varied pricing strategies. Current prices reflect increased supply pressure as some production facilities resume operations.
Supply: Increased production due to resumed operations at some facilities has added supply pressure to the market. Major enterprises initially raised prices due to strong order volumes, but not all manufacturers followed suit, resulting in differences based on order levels.
Demand: Downstream rubber enterprises exhibit cautious purchasing behavior, with a limited willingness to accept higher prices. Transaction volumes tend to focus on low-end price levels, with many companies prioritizing quick sales over pricing.
Cost: As of October 24, the market price for 110-grade raw silicone rubber is 14,600–15,000 yuan/ton. Profit margins for some suppliers have improved slightly, although downstream pricing constraints limit significant cost adjustments.
Outlook: With supply pressures likely to increase and cautious demand from downstream buyers, silicone prices may remain under pressure in the short term.
Zinc Alloy – increased by 3.75%
This week, zinc alloy prices rose briefly before declining. The market remains affected by mixed macroeconomic factors, with demand outlooks showing some regional weaknesses.
Supply: Following news of northern mine activity, market sentiment is moderately positive regarding raw material availability. Supply-side conditions appear stable, though raw material trades could continue to influence price confidence.
Demand: Demand from galvanized enterprises remains low, particularly in regions like Tianjin and Hebei, where construction activity is down. Overall, the demand outlook is cautious, with weak purchasing interest in several areas.
Cost: Prices for electrolytic zinc are projected to average around 25,300 yuan/ton in the coming week, with fluctuations expected between 24,800 and 25,800 yuan/ton. Domestic interest rate adjustments and mixed global economic news have maintained a neutral macroeconomic sentiment.
Outlook: Zinc prices may face downward adjustments next week, with minor price gains expected to be temporary. Market conditions will likely remain stable but are subject to minor shocks based on further macroeconomic developments.
Aluminum Alloy (AL Alloy) – increased by 2.08%
This week, domestic alumina prices rose, driven by limited supply and increasing demand from downstream aluminum plants. Key supply-demand imbalances have contributed to price increases.
Supply: Domestic bauxite mine recovery has been slow, leading to scarce bauxite resources in the local market. Imports from Guinea are affected by the early rainy season, disrupting transportation. Maintenance work at some facilities, particularly in Henan, has further tightened alumina supply.
Demand: High operating rates at downstream electrolytic aluminum plants have increased demand, with active replenishment especially noted in the northwest. Rising price differentials between domestic and foreign alumina have heightened export expectations, adding further pressure on demand.
Cost: Supply constraints combined with heightened demand have driven alumina prices upward. As demand continues to grow while supply remains tight, cost pressures are expected to persist.
Outlook: With ongoing supply-demand imbalances, alumina prices may continue to trend upward in the short term. Export demand and supply challenges are likely to maintain upward pressure on prices.
PVC (Polyvinyl Chloride) – No change
This week, PVC prices declined slightly amid weak fundamentals and limited market activity. Persistent cost pressures and subdued demand continue to weigh on the market outlook.
Supply: Maintenance activity increased, leading to a slight decrease in production load; however, the overall impact on supply remains limited. Inventory levels are adequate, with no notable shortages affecting availability.
Demand: Demand is restricted to essential purchases, with low enthusiasm for procurement. Export orders are also limited, reflecting weak demand across both domestic and international markets.
Cost: Caustic soda prices increased this week, while calcium carbide costs saw a slight decrease, which has reduced overall cost support. Margins for chlor-alkali and PVC integration improved, although the weakened cost base continues to keep prices under pressure.
Outlook: Despite weak fundamentals, PVC prices are expected to stabilize in the short term due to policy factors that might support the market bottom. While the outlook remains cautious, macroeconomic conditions could offer some relief from further declines.
Paper for Color Boxes – no change
This week, the market for color paper remained stable, with no significant price fluctuations. Transactions are occurring smoothly, mainly supporting essential purchasing needs.
Supply: Shipments from paper factories are steady, maintaining consistent availability across the market. Prices across major brands in the Guangdong market range from 5,400 to 5,800 yuan/ton, showing stability across different suppliers.
Demand: Downstream demand is primarily driven by essential purchasing, with no major replenishment surges noted. Dealers report smooth transaction flows, with individual deals often requiring negotiation based on specific order sizes.
Cost: Current prices are stable, with brands such as Huashan Sun, Whale King, Long Crane, and Snow Rabbit all maintaining recent price levels. The Guangdong market reflects a stable price range of 5,400–5,800 yuan/ton, consistent with previous weeks.
Outlook: The color paper market is likely to remain stable in the short term, with prices steady and minimal cost or supply pressures anticipated. Transaction dynamics will continue to focus on essential demand.
Paper for Cartons – increased by 2.33%
This week, the carton paper market remained steady, with transaction volumes aligned with basic demand levels and no significant price movements noted.
Supply: Supply levels are stable, with paper mills maintaining regular shipments to meet ongoing demand. Inventory is sufficient, and there are no indications of shortages impacting availability.
Demand: Demand is driven by essential replenishment, with most transactions fulfilling routine needs. Downstream buyers are purchasing cautiously, focusing on maintaining baseline inventory levels rather than stockpiling.
Cost: Prices have shown little to no change this week, holding steady in line with recent averages. Cost stability is expected in the near term, with no major fluctuations from raw material prices affecting carton paper.
Outlook: The market is expected to remain stable in the short term, with minimal price adjustments anticipated. Demand is likely to continue at current levels, reflecting essential purchasing patterns.
Stainless Steel – increased by 1.58%
This week, the waste stainless steel market experienced a steady decline in prices, influenced by falling futures and pressures from the finished material market. The atmosphere of concern among market participants has increased.
Supply: Supply levels are stable, but market sentiment remains cautious. Inventory levels of waste stainless steel products continue to exist without significant shortages impacting availability.
Demand: Demand is currently affected by the overall market conditions, with participants purchasing cautiously. Buyers are focusing on meeting essential needs rather than engaging in stockpiling.
Cost: Prices have continued to decrease this week, shifting the price center of gravity downward. However, further adjustments are expected to be limited unless new market developments arise.
Outlook: The market is anticipated to exhibit weak finishing operations next week, with minimal price adjustments expected. Unless impacted by significant news, the overall sentiment is likely to persist, maintaining current purchasing patterns.
Lithium Batteries – increased by 3.33%
This week, the anode material market for lithium batteries experienced a downward shift, with falling raw material prices leading to weakened cost support.
Supply: Supply levels remain consistent; however, the lack of cost support has resulted in a downward movement in market pricing for anode materials.
Demand: Demand appears to be subdued as market participants adjust to the declining price environment. Buyers are likely being cautious, reflecting uncertainties in pricing and cost stability.
Cost: The price of raw materials has decreased, contributing to weak cost support for the anode material market. The spot market for positive electrode materials has also seen a downward shift, primarily due to this lack of support.
Outlook: The market for positive electrode materials is expected to remain weak next week, with a particular focus on the price trends of raw material lithium carbonate. Continued monitoring of these trends will be essential for understanding future pricing dynamics.
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.
