Rising Oil Prices Impact Rust-Proof Packaging Prices

International‍‌‍‍‌‍‌‍‍‌ chemical industries have suffered from the continued increase of global crude oil prices. Packaging materials with rust-proofing capabilities, which are highly dependent on petrochemical raw materials, got their costs affected directly by this change. In the Southeast Asian market, VCI packaging paper and rust-proof film price levels have generally increased, and some companies have started to feel the pinch of the rising procurement costs. Under this scenario, supply chain optimization through sourcing from China is turning out to be a new option for more and more Southeast Asian buyers.

How Raw Material Price Increase Affects Southeast Asian Market

The most important feature of rust-proof packaging materials is VCI technology. Most of corrosion-inhibiting agents and composite structural materials that can be used in rust-proof packaging materials are derived from petrochemical industry chain. With the increase in crude oil price, raw material cost would go up rapidly. The prices of the finished products will be increased after passing all along the supply chain finally. Although the manufacturing industry of Southeast Asia has been experiencing rapid growth, some countries still have to depend on the chemical industry for importing or sourcing locally from neighboring countries in terms of high-end rust-proof materials. When raw material prices go up, production costs of local manufacturers will be greatly affected resulting in a market general increase of rust-proof papers and rust-proof films, and the supply stability of some products could also be impacted to some extent.

Hot Climate Increases Need for Rust-Proof Materials

Unlike the Japanese and South Korean markets, Southeast Asia is characterized by a complex climate, with high temperature and humidity being the norm. Metals in these regions are easily oxidized and corroded, which in turn requires the use of rust-proof packaging. If only ordinary rust-proofing materials are used in such environments and protection fails, it may lead to direct losses. Our company has developed and collaborated with governments to understand and test the suitability of rust-proofing products specifically for the climate of Southeast Asia after long-term trial and exposure. Our rust-proof products can continue to be used in this region without performance deterioration, which is one of the main reasons.

During the past several years, CVCI has spent a huge amount of resources and efforts in the research, development, and production of VCI rust protection materials, and as a result, we have enhanced our manufacturing capabilities and built a stable raw material supply system. Despite the fluctuation in raw material prices, we have been able to keep supply stability at a very high level. On top, our products have been shipped to many countries and regions, and we have a lot of experience in the application of materials in the Southeast Asian market. These real-life cases give us strong arguments in favor of product performance.

What can CVCI offer to Southeast Asian customers?

The present cost rise is the reason why buyers have their eyes not only on price but on stable supply and long-term cooperation capabilities as well. CVCI has a wide range of rust-inhibition products starting from VCI packaging paper and film to high-strength composite packaging materials, which can meet the requirements of different application scenarios. For customers, we can offer more tailored rust-preventive solutions based on their transportation modes, storage durations, and usage environments. Also, from the outset, we have been a continuous contributor to R&D investment combining that with practical application experience to help our customers minimize rust risks and raising overall packaging dependability in a complex setting.

Dear Southeast Asian customers, we welcome your cooperation.

Come and partner with CVCI! Together, we can establish long-term relationships that are beneficial to both of us. You will have stable product supply, reliable product quality, and best custom service to help you better weather through the market changes at present. To get a more comprehensive view of our production capabilities as well as our R&D system, we encourage you to visit the CVCI factory in China. Even in this rapidly changing environment where the market is concerned, we have a serious desire to work with you in creating a supply chain partnership that is both stable and ‍‌‍‍‌‍‌‍‍‌efficient.