Some Chinese exporters lift prices on rising costs due to Iran war

BEIJING - Some Chinese exporters are raising prices on goods from toys to yoga pants and medical catheters, as fuel shortages from the Iran war push up raw-material and production costs in the conflict’s fourth week. 

Exporters across the world’s second-largest economy – from online sellers to bulk suppliers for US and European clients – began raising prices last week as oil-linked costs surged and the conflict showed no sign of easing, according to five exporters interviewed by Bloomberg News.

The increases range from low single digits to the teens, they said.

Ms Pang Ling, a sales manager at Shanghai‑based medical catheter maker, has spent recent days calling to urge mostly US clients to lock in orders before prices rise.

Her company plans a 6 per cent increase from next week, enough to offset most of the jump in input costs, she said.

Some customers placed urgent orders, while others stuck to their usual purchasing pace. 

“Rising costs have left us with no choice but to increase our prices – a first in my career,” said the 36-year-old Pang. “It’s a move of last resort, and we’re constantly mindful of the risk that clients might turn to our peers.”

The rare hikes are an early sign that soaring raw material costs driven by fuel shortages stemming from the war are starting to drive consumer inflation.

Exporters have struggled with the volatility, which hinders production planning and long-term pricing.

They also show how sharply conditions are shifting for Chinese exporters, who have spent years cutting prices amid intensifying competition and persistent overcapacity.

Ms Pang’s company reduced prices by more than 5 per cent for US buyers in 2025 after US President Donald Trump’s tariffs – a concession that many American retailers demanded as they sought to share the burden.

The energy supply shock from the war has pushed oil higher, with the global benchmark Brent surging by more than 50 per cent since strikes began in late February.

Oil‑linked raw materials – from polyester and acrylic fibres to plastics like the polyurethane used in catheters – jumped as much as 50 per cent in the first week of the conflict, Chinese suppliers said.

Prices have eased but remain more than 10 per cent above pre‑war levels.

Mr Guo Feng, who runs a garment factory in Guangzhou supplying US online retailers, raised prices by nearly 20 per cent last week on polyester‑heavy apparel such as yoga wear.

His suppliers had briefly pushed prices up more than 30 per cent, before settling at 10 per cent to 20 per cent above late-February levels. 

Mr Guo said it is “reasonable” to pass on costs, as material prices are expected to remain elevated for some time.

Freight costs are compounding the pressure.

Last week marked the most concentrated period of shipping‑rate increases since the war’s outbreak, said exporters and freight forwarders, amid oil’s climb to new highs.

Rates rose by the teens to 30 per cent, and in some cases as much as 50 per cent, depending on shipping routes and logistics channels, the exporters said.

Mr Huang Lun, a sales manager at a Guangzhou‑based apparel company selling underwear and yoga pants to the US and Europe via Amazon and Shein, said the firm recently began implementing low‑single‑digit price increases across most markets to offset higher material and logistics costs.

The situation is better than when the US tariffs on China rose to 145 per cent in 2025, Mr Huang said, noting that production and shipments are continuing.

Still, he warned that fallout from the war could be more severe if it drags on, affecting more markets and products and leaving “nowhere to hide”.

“Our margins can still absorb most of the cost increases for now,” Mr Huang said. “But that won’t remain the case if the war persists.” BLOOMBERG