Under the Disturbance of International Situation, Raw Material Prices Rise - Panlong Responds to Cost Challenges and Ensures Quality Supply

Under the Disturbance of International Situation, Raw Material Prices Rise - Panlong Responds to Cost Challenges and Ensures Quality Supply

Currently, global geopolitical unrest, supply chain disruptions and volatile international energy prices have caused a continuous surge in upstream raw material prices, with cost pressures spreading to the manufacturing industry. Quanzhou Panlong Sihai Machinery Co., Ltd. (hereinafter referred to as "Panlong Sihai"), with four factories covering raw materials, machinery, molds and Melamine tableware, is facing rising raw material prices and soaring production costs. The company has taken response measures and reasonably adjusted product prices to ensure stable supply.

Increasing international uncertainty, especially ongoing Middle East geopolitical conflicts, is the core cause of rising raw material prices. Unstable navigation in the Strait of Hormuz has created a global crude oil supply gap, pushing up chemical raw material prices sharply. In Q1 2026, most global chemical commodities saw significant price increases, showing a general and continuous upward trend.

This price surge has fully impacted Panlong Sihai’s four factories. Core imported raw material prices for the raw material factory have risen, with melamine up 9.3% year-on-year; steel, mold steel and other materials for machinery and mold factories have increased significantly, as have core raw materials for the melamine tableware factory. The average production cost of each factory has risen by over 35%.

Despite its "closed-loop industrial chain" advantage, Panlong Sihai still faces cost pressures. Costs are transmitted among factories: melamine resin, a core raw material accounting for over 60% of tableware total cost, has a significant impact on prices. To maintain operations and quality, the company has decided to adjust product prices.

Faced with challenges, Panlong Sihai adheres to quality and leverages the synergy of its four factories: the raw material factory optimizes procurement and locks in some raw material prices; machinery and mold factories upgrade processes to improve utilization; the melamine tableware factory strictly controls quality and reduces costs through large-scale production to ensure stable quality.

Industry insiders note that the current raw material price rise is a long-term fluctuation from multiple factors, requiring stronger supply chain resilience. With a complete industrial chain, Panlong Sihai can respond flexibly, and this price adjustment is necessary to ensure long-term development and quality services.

In the future, Panlong Sihai will continue to monitor international trends and raw material prices, optimize the industrial chain, strengthen cost control, balance costs and prices, provide cost-effective products for global customers, and promote high-quality development.