Exchange rate fluctuations cause product price increases

                                                         Exchange rate fluctuations cause product price increases

Since September 2025, the RMB exchange rate against the US dollar has continued to decline, reaching a new low for the year. This exchange rate fluctuation has directly led to rising costs for dollar-denominated water treatment chemical products, putting domestic exporters under pressure to squeeze profits. Companies have raised prices for their own water treatment products or suspended quotations, waiting for the exchange rate to stabilize before resuming their offers.

 International buyers have begun purchasing early.

The price transmission effect caused by exchange rate fluctuations is prompting water treatment chemical companies in South America, Southeast Asia, and other regions to accelerate their procurement pace. A purchasing manager at a Brazilian environmental technology company stated, "We are bringing forward orders originally scheduled for the fourth quarter to this month to avoid potential additional costs later." This practice is being followed by many other companies.

Depreciating exchange rates lead to rising costs.

Domestic water treatment chemical exporters are facing a double squeeze from exchange rates and raw material costs. On the one hand, the appreciation of the RMB has reduced product price competitiveness, but on the other hand, the prices of imported raw materials such as catalysts and reagents required for production have also risen, narrowing their actual profit margins.

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