In March 2026, the Guangdong Ceramics Association announced that the average ex-factory price of the Foshan ceramics industry rose 8% year over year. Over the past 4 weeks, the Huayuesc Sourcing team worked directly with 14 partner factories in Foshan to understand the causes and provide recommendations for Vietnamese buyers.
3 main causes
First, the price of natural gas (LNG) used for kilns rose 22% since November 2025 as geopolitical tensions disrupted supply from Australia and Qatar. Gas consumed by ceramic kilns accounts for 18-25% of production cost, so this was a direct hit.
Second, industrial electricity costs in Guangdong rose 6% after the tier-2 electricity pricing reform (for large enterprises) took effect in Q1/2026. Ceramics factories are typical tier-2 customers.
Third, skilled-worker wages rose 4-5% due to competition from Shenzhen's electronics and new-energy industries. Top-tier suppliers (Dongpeng, Monalisa, NewPearl) had to raise wages to retain skilled labor.
Recommendations for Vietnamese buyers
- โธPlace your MOQ before June 2026 โ prices may rise another 3-5% in Q3 if gas remains volatile.
- โธPrioritize suppliers with electric kilns over gas kilns โ costs are more stable (Monalisa and Foshan Orient Bath have converted 60% of their kilns to electric).
- โธNegotiate annual contracts โ Huayuesc is helping 8 Vietnamese dealers lock in prices via annual contracts with 3 top-tier suppliers.
- โธCombine orders โ lower shipping costs offset the price increase. Orders of 40HQ or more have DDP prices 12-15% cheaper than LCL.
โAn 8% increase is significant but not a crisis. Smart buyers will use it as an opportunity to negotiate long-term contracts with suppliers and lock in prices for the next 12 months.โ
Short-term vs long-term impact
In the short term (Q2-Q3/2026), buyers importing ceramics from Foshan will see DDP prices rise about 3-5% (assuming shipping rates stay flat). For a $50K order, a buyer may pay an extra $1,500-2,500.
In the long term (2027+), Huayuesc forecasts prices will stabilize as LNG gains new supply from the US and suppliers switch to electric kilns. This is also an opportunity for mid-to-small suppliers to adopt new technology, potentially cutting costs 5-10% and becoming more competitive.
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