Tag: sourcing from china

Sofeast’s team continues to monitor the cost evolution of key raw materials in China, helping importers and manufacturers stay informed.

This latest update from the market analysts we work with reflects changes in RMB costs and percentages over the past year through July 27, 2026. Click the charts to expand them.

Monthly China Raw Material Cost Changes – June 2026

Copper – Monthly Change: +2.94%

Copper prices rose moderately during July, although they were almost unchanged during the latest week.

• Drivers
  Domestic spot copper supplies remain tight, and premiums are still high. Maintenance work at major Chinese smelters and disruptions affecting copper ore supplies have reduced production and tightened availability. However, downstream demand is weakening as buyers become increasingly reluctant to purchase at current high prices.
• Outlook (next week)
  Copper prices may rise further before pulling back. An increase in recycled copper supplies and weaker demand for expensive refined copper are expected to limit further price increases.

ABS (AG-15E1) – Monthly Change: +11.32%

ABS prices rose considerably during July, although they experienced a slight correction during the latest week.

• Drivers
  Higher production costs supported the increase in ABS prices. However, demand from downstream manufacturers remained relatively weak, slowing the pace of price increases and keeping market activity subdued.
• Outlook (next week)
  Production costs are expected to remain firm. ABS prices are therefore likely to remain relatively strong, although weak demand may prevent another sharp increase.

Silicone (110) – Monthly Change: -19.59%

Domestic silicone raw rubber prices fell sharply during July.

• Drivers
  Silicone monomer manufacturers were eager to secure new orders, and increased competition pushed transaction prices lower. Demand from downstream manufacturers did not improve significantly, adding further pressure to the market.
• Outlook (next week)
  Some downstream companies have started restocking at the lower prices. This has helped manufacturers secure more advance orders and reduce their inventory pressure. Silicone prices are therefore expected to stabilise in the short term.

Zinc Alloy (Zamak 5) – Monthly Change: +2.14%

Zinc alloy prices increased moderately during July and continued to move slightly higher during the latest week.

• Drivers
  Stronger market fundamentals provided support for electrolytic zinc prices. Inventory levels and the rate at which existing stocks are being consumed are also influencing the market.
• Outlook (next week)
  Zinc prices are expected to remain supported. The direction of the market will depend largely on whether zinc inventories continue to fall.

Aluminum Alloy ADC 12 – Monthly Change: +0.43%

ADC 12 aluminum alloy prices remained broadly stable during July.

• Drivers
  A mixture of positive and negative economic and supply-demand factors kept aluminum prices within a relatively narrow range. There was not enough pressure in either direction to create a clear trend.
• Outlook (next week)
  Macroeconomic uncertainty and geopolitical tensions may continue to cause some volatility, but aluminum prices are expected to remain range-bound.

Paper for Color Boxes – Monthly Change: 0.00%

The price of coated paper used for printed color boxes remained unchanged during July.

• Drivers
  Supply remained stable, and no major production shutdowns were announced. Existing publishing orders helped paper mills reduce their inventories, but there was little growth in new commercial demand. Distributors continued to focus on clearing their current stocks.
• Outlook (next week)
  Most purchases are expected to be made only when materials are immediately required. Coated paper prices are therefore likely to remain flat in the short term.

Stainless Steel (304/2B 0.4MM) – Monthly Change: -1.75%

The price of 304 stainless steel fell slightly during July and remained unchanged during the latest week.

• Drivers
  Cold-rolled stainless steel prices initially declined before recovering slightly as futures prices improved. This supported market confidence to some extent, but the recovery remained limited.
• Outlook (next week)
  There are currently few strong factors that would push stainless steel prices significantly higher. Prices are expected to continue fluctuating within a relatively narrow range.

Battery Materials (Lithium Cobalt Oxides) – Monthly Change: -4.09%

Battery material prices declined during July, although they increased very slightly during the latest week.

• Drivers
  Prices for cathode materials and ternary precursor materials moved lower. Lithium iron phosphate prices also declined alongside falling spot lithium carbonate prices. At the same time, battery material manufacturers continue to maintain strong production schedules, and exports are expected to grow moderately.
• Outlook (next month’s orders)
  Some leading manufacturers have announced planned price increases for August, and companies in the industry have reportedly discussed wider price adjustments. Continued geopolitical instability may also add upward pressure, so battery material prices could begin rising again.

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 provide importers with transparency in their supply chain and to give them greater control. And this information is crucial for gaining 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 or not.

ABS (AG-15E1) +1.27% monthly change

Toward the month-end, ABS prices fluctuated within a narrow range, with transactions mainly driven by immediate demand.

• Drivers
  Upstream cost support was evident, but sustained downstream buying interest remained insufficient. Buyers continued to resist higher prices, limiting the market’s ability to move upward despite firmer inputs.
• Outlook (early January)
  ABS prices may see slight upward fluctuations supported by costs and regional replenishment, but overall stability is expected to remain the dominant trend.

Silicone (110) +1.48% monthly change

Toward the month-end, domestic 110 silicone rubber prices were relatively stable, with only small fluctuations observed.

• Drivers
  Upstream DMC prices remained elevated, keeping cost pressure high. Downstream inventories declined slightly, but stocking willingness stayed low. Buyers and sellers remained cautious, resulting in a stalemate-driven market.
• Outlook (early January)
  Silicone prices are expected to remain generally stable with minor fluctuations, supported by costs but constrained by uneven demand.

Zinc Alloy (Zamak5) +2.35% monthly change

Toward month-end, electrolytic zinc prices continued to adjust at relatively high levels, with average prices edging lower despite some late support.

• Drivers
  Market sentiment remained cautious amid macro uncertainty, and confidence in demand-side recovery was limited. Supply-side factors continued to provide partial support, preventing sharper declines.
• Outlook (early January)
  With the New Year holiday period ending, the market is expected to focus on post-holiday direction, with cautious and range-bound trading likely.

Aluminum Alloy (ADC 12, Jiangsu) +4.36% monthly change

Toward the month-end, aluminum prices continued to fluctuate within a high range.

• Drivers
  Positive sentiment supported elevated prices through most of the month, but momentum softened slightly toward the end as caution increased.
• Outlook (early January)
  Prices may attempt short-term gains before settling back into range-bound fluctuations, suggesting a high but less stable pricing environment.

Paper for Color Box (157 g double-coated) 0.00% monthly change

Toward the month-end, the double-coated art paper market remained broadly stable, with the average price slightly lower.

• Drivers
  Supply-side pressure persisted, and mill profitability remained under strain. Publishing orders progressed steadily, but broader social demand showed limited improvement. Year-end cash recovery pressure on distributors continued to cap price increases.
• Outlook (early January)
  The market is expected to remain stable overall, with steady production levels and no meaningful improvement in demand anticipated.

Stainless Steel (304/2B, 0.4 mm, Taiyuan) +1.74% monthly change

Toward month-end, stainless steel prices continued to adjust amid cautious market sentiment.

• Drivers
  Both supply and demand remained relatively weak, prompting competitive pricing as sellers sought to stimulate transactions.
• Outlook (early January)
  Prices are likely to fluctuate within a narrow range, with limited upward momentum and continued cautious trading behavior.

Battery Material (Lithium Cobalt Oxides) +6.70% monthly change

Toward month-end, cathode material prices continued to rise, while ternary precursor prices increased slightly.

• Drivers
  Lithium carbonate prices remained on an upward trajectory, and upstream raw materials stayed broadly bullish. Buyers increasingly favored lithium iron phosphate (LFP) due to concerns over cobalt price volatility, while production schedules remained high and supply-demand balance tight.
• Outlook (early January)
  The market is expected to remain firm, with potential upward pressure on processing fees. Policy developments and bidding results from major downstream players will be key factors to watch.

Buyer Takeaways – December Outcomes → January Actions

Polymers: stable December closes, selective January leverage
December closed with epoxy resin and ABS showing only modest monthly movement, reflecting cautious downstream demand and firm but contained cost support. Heading into January, buyers still have room to negotiate on spot volumes and staged releases, particularly for epoxy resin and ABS grades. Silicone remains the exception: December’s cost pressure from elevated DMC prices has carried through, so January sourcing should prioritize flexible commitments and short quotation validity rather than locking in long-term volumes at current levels.

Silicone: high December costs, disciplined January commitments
Silicone prices ended December supported by upstream costs but constrained by uneven demand. For January, buyers should avoid assuming continued upward momentum and instead benchmark multiple suppliers, monitor DMC movements closely, and keep order sizes conservative until clearer demand signals emerge.

Metals: elevated December baselines, tactical January timing
Aluminum alloy prices finished December at relatively high levels, while zinc alloy and stainless steel remained range-bound. In January, this points to tactical purchasing: avoid chasing early-month strength, time orders around short-term dips, and use softer stainless steel conditions to negotiate on fabricated or finished metal parts.

Packaging: flat December performance, cautious January planning
Double-coated paper prices closed December unchanged, with weak demand continuing to cap upside. In January, buyers can maintain short PO cycles, solicit multiple quotes, and explore volume-for-stability discussions, as suppliers may prioritize order continuity over price increases.

Battery materials: firm December close, upward January risk
Battery material prices ended December on a firm footing, supported by lithium carbonate and energy storage demand. Moving into January, buyers should review BOM cost assumptions and quotation validity periods, as modest further increases remain plausible, particularly for materials linked to lithium pricing and energy storage applications.

Sofeast’s team continues to monitor the cost evolution of key raw materials in China, helping importers and manufacturers stay informed. This latest update from the market analysts we work with reflects changes (RMB costs and %) over the past year, up to Oct 27, 2025.

Monthly China Raw Material Cost Changes – October 2025

Epoxy Resin (E-51) -4.19% monthly change

• This week: Trading focus continued to decline as both costs and demand exerted downward pressure.
• Drivers: Weaker cost support and muted downstream restocking.
• Outlook (next week): Stable to slightly weak; prices likely to consolidate with a mild bearish bias.

ABS (AG-15E1) -3.76% monthly change

• This week: Prices fell early, then stabilized; trading volume improved slightly.
• Drivers: Feedstock styrene rebounded from lows while overall supply remained ample, capping upside; sellers focused on spot stability.
• Outlook (next week): Range-bound; costs may fluctuate within a band, with no acute short-term contradictions expected.

Silicone (110) -0.85% monthly change

• This week: Stable overall. Feedstock DMC stopped rising and slipped, softening cost support.
• Drivers: High risk of further DMC declines and insufficient follow-up demand; as DMC falls, the price advantage of 107 & 110 grades may narrow.
• Outlook (next week): Steady but slightly weak as cost support continues to ease.

Zinc Alloy (Zamak5) +2.42% monthly change

• This week: Electrolytic zinc prices fell then rose, leaving the average price lower week-on-week.
• Drivers: Weak fundamentals persist; macro uncertainty remains elevated.
• Outlook (next week): Cautious, light newsflow expected; range-bound trade with a defensive tone.

Aluminum Alloy (ADC 12) +1.46% monthly change

• This week: High-level adjustment after making a new YTD high.
• Drivers: Upward macro + fundamental currents lifted prices; spot arrivals vary by consumption hub.
• Outlook (next week): Bias to moderately strong; watch for unclear macro guidance and uneven arrivals.

Paper for Color Box (157g double-coated) -0.67% monthly change

• This week: Decline narrowed, but the price center moved down.
• Drivers: Mills continue inventory build and profit compression; supply abundant, demand limited, and tenders not yet scaled up; circulation remains slow.
• Outlook (next week): Soft; mills likely keep normal operations, but weak orders weigh on prices.

Stainless Steel (304/2B 0.4MM) -1.00% monthly change

• This week: Market edged down overall with stronger wait-and-see sentiment.
• Drivers: Mill list prices nudged up and futures firmed, briefly supporting spot, but supply–demand competition is intensifying.
• Outlook (next week): Limited upside; expect choppy trading as competition heats up.

Battery Material (Lithium cobalt oxides) +37.09% monthly change

• This week: Cathode prices showed minor fluctuations; precursor prices unchanged.
• Drivers: Cathode pricing is tracking lithium carbonate; lithium carbonate ticked up slightly while LFP stayed stable. Processing fees remain steady; sell-to-produce mode keeps sales pace brisk.
• Outlook (next month’s orders): Optimistic order book; stable processing environment.

Buyer Takeaways October ’25

• Polymers mixed: ABS is range-bound and epoxy is softening; handy time to negotiate spot buys or staggered releases.
• Silicone watch: Potential DMC down-move could leak into 107/110 pricing; avoid over-committing before confirming next-week quotes.
• Metals diverge: ADC12 retains moderate strength; zinc alloy looks range-bound; time purchases to dips.
• Packaging: 157 g art paper remains soft; consider shorter PO cycles to capture incremental declines.
• Stainless: Expect limited upside; competitive quotes likely as mills and traders jostle for volume.

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.