To compare China vs India chemical prices fairly, first confirm both quotes are for the same specification, then convert both to landed cost at your port, including duties and risk. A cheaper unit rate does not mean a cheaper product if the grade, pack, timing or paperwork differ.
This article gives no price comparison between the two origins. It gives the method, so that you can compare the quotes you receive.
Step 1: Make the specification identical
Write one specification and send it to both. Include the active content or assay, the impurity limits, the physical form, the test methods and the pack. If one supplier quotes a different grade, you are comparing two products, not two origins.
Ask both for a sample from current production and test them in the same laboratory. See how Indian chemicals compare with Chinese ones for typical differences.
Step 2: Fix the Incoterm and build landed cost
Ask both for the same Incoterm, then add the costs that come after it. The line items include:
- The goods price at the agreed Incoterm.
- Ocean freight, any dangerous goods surcharge and insurance.
- Import duty and any anti-dumping duty that applies to the origin. Check with your customs broker, because duties differ by country and origin and can change.
- Import taxes, port handling, customs clearance and inland delivery.
- Testing, storage and the cost of money while goods are in transit.
Our guide on the best Incoterm for chemical imports explains which term suits your risk, and FOB, CIF or DAP gives the basics.
Step 3: Price the differences that are not on the quote
- Lead time and shipping time: a longer route or a slower supplier ties up more stock and cash.
- Reliability: how often the supplier delivers on the date and on specification.
- Compliance paperwork: REACH or other registrations, safety data sheets and certificates for your market.
- Payment terms and the protection they give you.
- Dependence on one origin. Having a second source can be worth paying for.
Common mistakes
Buyers often compare an ex-works number from one origin with a CIF number from the other. They compare quotes at different validity dates, or ignore the difference in strength or purity between products. Another mistake is to forget that duties, export incentives and freight rates change, so a comparison is only valid for the date of the quotes.
Use how to compare chemical quotes on an equal basis as a checklist, and read China-plus-one sourcing if you are adding a second origin.
Test the samples before the numbers
The best price comparison starts with samples. Test one from each origin in your own process, for the same properties, and record the differences. If one is weaker or has more impurities, adjust the quote for the amount you must use.
Then look at the documents each supplier can provide, such as safety data sheets, certificates of analysis and registration support. If one offer cannot support your market's rules, its lower price is not available to you.
How we help
We find and audit Indian manufacturers, check samples and documents, have lots tested, and supervise production and loading. We work for you, not the factory. To compare an Indian offer with your current source, book a free sourcing review.