Raw Material Prices Stay High: How JKINGS Is Navigating Industry Pressure Two Years Into the Cost Surge Introduction

Raw Material Prices Stay High: How JKINGS Is Navigating Industry Pressure Two Years Into the Cost Surge
Introduction
Since the second quarter of 2023, the grinding wheel industry has been under sustained pressure from surging raw material costs. Epoxy resin prices rose 35% year-on-year in Q2 2023, and brown fused alumina increasedby over 20% during the same period. These increases, drivenby international commodity volatility and domestic production constraints, have severely squeezed profit margins, especially for small and medium-sized enterprises.

Now in 2025, the cost burden continues to ripple across the industry. But JKINGS, a leader in high-performance grinding solutions, is responding with long-term strategic upgrades in technology, supply chain resilience, and industry collaboration.

1. Cost Surge: Supply-Demand Imbalance Drives Persistent Increases
Resin Shortage and Crude Oil Volatility (2023 Onward)
As early as 2023, the tight supply of bisphenol A — a key raw material for epoxy resin — combined with high international oil prices, pushed resin costs to a three-year high. Domestic restrictions under China’s “dual carbon” policy further reduced chemical production, exacerbating supply pressures.

Abrasive Production Constraints Persist Since 2023
In major abrasive-producing provinces like Henan and Shandong, intensified environmental inspections reduced capacity starting in mid-2023. Logistics costs for imported abrasives, such as silicon carbide, also climbed. As a result, abrasive costs roseto 45% of total grinding wheel production costs — a level that remains high as of 2025.

A JKINGS supply chain manager notes: “The raw material inflation that began in 2023 hasn’t eased. Our long-term planning started then — and that’s why we’re still stablenow.”

2. Industry Chain Disruption: Pressure Cascading Across theEcosystem
Upstream: SMEs Exit, Exports Rise
By late 2023, over 20% of resindistributors in the Yangtze River Delta had suspended domestic orders, pivoting to export markets in Southeast Asia. Smaller abrasive smelterswere shut down, consolidating the market around large players like China National Building Materials Group.

Midstream: JKINGS Surges Amid Industry Polarization
In 2023, while SMEs were reporting a 40%+ drop in profits, JKINGS chose to investin ceramic-modified resins thatreduced abrasive use by 10% and lowered production costs by 8%. As smaller competitors raised prices and lost clients, JKINGS maintained delivery reliability and customer retention.

“Between 2023 and now, JKINGS has never relied on short-term price hikes. We’ve relied on R&D and smart manufacturing to manage cost pressure,” said the Head of Technology at JKINGS.

Downstream: Manufacturing Cost Pressure Spikes
In 2023, a leading new energy vehicle company stated: “Grinding wheels account for 12% of our consumable costs. The price hikes risk pushing us over our annual production budgets.” By 2025, this pressure remains real for many industrial users.

3. JKINGS’ Strategic Response:Innovation, Optimization, Collaboration
2023–2025: Technical Innovation as a Core Defense
In 2023, JKINGS developed glass fiber-reinforced phenolic resin, 18% cheaper than traditional epoxy.

In 2024, the company implemented smart material control systems across multiple factories to reduce waste and optimize inputs in real time.

Industry Collaboration and Resource Strategy
By late 2023, JKINGS and regional partners signed six-month locked supply agreements to stabilize raw material access.

JKINGS supported the launch of an abrasive recycling systemin Shandong that raised abrasive reuse rates to 90%.

Through the Yangtze River Delta Abrasive Industry Alliance, JKINGS helped smaller companies access centralized procurement and reduce costs.

4. Looking Ahead: 2025 Outlook and Beyond
Short-Term: Continued Volatility
Market agencies predicted in 2023 that resin and abrasive prices would remain high through Q3, and that forecast proved accurate. Even now in 2025, grinding wheel producers are facing compressed margins, with some seeing further 2–3% declines in gross profit.

Long-Term: Building a Resilient,Global Strategy
JKINGS continues to invest in:

High-performance resin-basedmaterials to reduce reliance on traditional abrasives;

Global sourcing programs in Africa and Southeast Asia to mitigate import risks and secure long-term mineral resources.

Zhao, Deputy Secretary-General of the China Machine Tool Industry Association, remarked in 2023:
“This price shock marks a shift from price competition to tech competition. By 2025, R&D-driven enterprises will expand market share by at least 20%.”

Li Ming, analyst at Mysteel, also noted:
“As long as crude oil remains above $90/barrel, resin prices will be difficult to bring down. Companies must explore recycled materials and financialhedging tools.”Conclusion
What began as a raw material spike in 2023 has become an enduring test of resilience and strategic capability. For JKINGS, it has been a proving ground — one that validated years of investment in R&D, smart manufacturing, and industry collaboration.

As 2025 unfolds, JKINGS remains committed to transforming pressure into progress — delivering durable value for its customers while helping shape a smarter, greener grinding wheel industry.