A “Reassurance Letter” to Our Customers: Why Prices Remain Stable Amidst the Conflict?

Dear Customer / Partner,

The international situation has been turbulent recently, with the conflict impacting the global market and causing crude oil prices to fluctuate.We understand that you might be watching the news and wondering in your heart: “Will plastic pipe prices go up soon? Is this a good time to place an order?”

Today, we want to have an open and honest conversation about why, during this special period, the prices you get from us can remain stable, and can even be more reassuring than you expect.

 

The First Reassurance Pill: We Have “Grain in the Barn” and Won’t Follow the Hype of Speculation

The war is far away in the Middle East, but the raw materials we rely on are physically present in our warehouses.

• Sufficient Safety Stock: Based on our assessment of the international situation early this year, we proactively built up our raw material inventory, establishing a safety stock level higher than the industry average. Current production uses materials procured “before the conflict,” with their costs already locked in.

• Lag in Procurement Impact: Even if the price of newly purchased raw materials increases, it takes a full cycle of “procurement – warehousing – production – cost accounting” for it to be reflected in the product’s final price. For at least the next 1-2 months, our cost structure remains stable.

Simply put: We do not use our inventory as a bargaining chip, nor do we use the conflict as an excuse to raise prices.

 

 

The Second Reassurance Pill: The Industry is “Squeezing Out Water,” and Vicious Price Wars Are Over

In previous years, the industry was plagued by fierce price wars. You worried about price hikes, and we worried too. But 2026 is different:

Low-Capacity Production is Exiting: National policies are accelerating the phase-out of outdated, inefficient small factories. Competitors who relied on “cutting corners and dumping at low prices” are exiting the market. The supply side of the industry has begun to contract substantially. The era of “involutionary” price cuts is ending.

PVC-U pipes, however, are completely non-conductive, do not undergo electrochemical reactions, and have excellent tolerance to acids, alkalis, and salts. When buried, they require no anti-corrosion treatment and remain as good as new even after 50 years.

We Pursue Reasonable Profit, Not Windfalls: Our current pricing strategy is based on rational pricing for healthy operations and long-term service. We will not immediately pass on slight cost increases to you, nor will we exploit market panic to jack up prices. We want a long-term, steady stream of cooperation, not a one-off deal.

 

 

The Third Reassurance Pill: Domestic Demand is Stable; We Don’t Lack Orders, But We Cherish Long-Term Customers Even More

War or no war, the multi-trillion-yuan investment of our country’s pipeline network renovation is real and tangible. Our production lines are running at full capacity, with operating rates steadily recovering.

But precisely because of this, we understand more clearly: In turbulent times, stable partnerships are more valuable than anything else.

For our long-term customers, we are willing to:

Prioritize Supply Guarantees: Not let short-term interests crowd out your allocation.

Maintain Transparent Price Communication: If truly unavoidable cost changes occur in the future, we will communicate in advance and discuss solutions together. There will be no “sudden surprises.”

 

 

A Final Thought

Geopolitical conflicts are matters of state, but going about our daily business and making a living is our own affair. In this era of information overload and fluctuating sentiment, we hope to counter your uncertain worries with a firm commitment.