The Impact of Global Turbulence on The Thermal Break Strip Industry

1、Soaring Costs: Rising Raw Material Prices Squeeze Profit Margins

The most direct impact of the current international situation is the increase in raw material costs for thermal break strips.

Rising prices of core raw materials: The production of thermal break strips (especially mainstream polyamide thermal break strips) heavily relies on the petrochemical industry chain. Recent geopolitical conflicts in the Middle East have driven up international oil prices, leading to significant price hikes in key chemical raw materials such as PA66 (polyamide).

Cost transmission to products: This cost pressure is spreading across the entire industry. According to estimates, rising oil prices have already increased the cost of building materials like EPS insulation boards by approximately 33%, requiring product price increases of about 28% to cover costs. Similarly, related sectors such as waterproofing and coatings have already seen “collective price hikes,” and the thermal break strip industry cannot remain immune.

Dilemma between profit and price increases: Rising raw material costs directly squeeze corporate profit margins. While passing costs downstream is an option to relieve pressure, weak demand and intense “involution” in the downstream door, window, and construction industries limit the room for price increases. Many companies face the dilemma of “dying without a price increase, or dying with one.”

2、Trade Barriers: Global Supply Chain Restructuring

The rise of trade protectionism in various countries, particularly U.S. tariff policies, is reshaping the industry’s global supply chain.

U.S. tariff policies: In 2025, based on Section 232 of the Trade Expansion Act, the United States imposed tariffs of up to 25% on certain imported goods. Although some plastic products are exempt, the policy uncertainty has forced many multinational companies to adjust procurement strategies, reducing reliance on China and other Asian countries and shifting toward local sourcing in North America or Europe.

Regionalization of supply chains: To mitigate tariff risks, global supply chains are shifting from “globalization” to “regionalization.” Companies with overseas production capacity or strong ties with major local customers will gain advantages, while smaller exporters will face further squeezed living space.

3、Domestic Market: Seeking Opportunities Amid Uncertainty

Despite significant external pressures, the domestic market also offers some new opportunities for the industry.

Export pressures: Due to rising trade barriers in Europe and the U.S., both direct exports of thermal break strips and indirect exports through downstream doors, windows, and curtain walls face greater resistance.

Domestic demand as a buffer: To hedge against external risks, China is strengthening its “internal circulation.” With the implementation of the 15th Five-Year Plan, projects such as urban renewal, renovation of old residential communities, and the construction of affordable housing will provide stable demand for the building materials industry.

Policy tailwinds: Global building energy efficiency standards are becoming increasingly stringent, making green buildings mainstream. In China, policies related to the “dual carbon” goals are also driving the adoption of high-performance energy-saving products. This creates structural growth opportunities for high-quality thermal break strips with excellent insulation properties.

In summary, the current international situation is forcing the thermal break strip industry to move away from its past comfort zone of low costs and high growth, and enter a new development stage characterized by high costs, high barriers, and a renewed focus on innovation. For companies, the ability to manage costs, ensure supply chain security, and seize opportunities in the domestic market will be key to their survival and growth in the future.