In 2025, the price of insulating paper will rise, and ZTELEC will have high quality and low price

2025 electricity with insulating paper raw material prices continue to rise,  ZTELEC insulating paper good quality and low prices

It is understood that the beginning of 2025 continues to this day, the price of insulating paper for electric power market as a whole shows a rising trend, what causes insulating paper prices tend to be high? I analyze the following 4 reasons:

1. Continued pressure on raw material costs

Tight supply of wood pulp: global wood pulp production capacity expansion is limited, coupled with the tightening of forest resource management (such as Brazil, Northern Europe environmental policy), wood pulp prices may remain high.

Dependence on fossil energy for chemical materials: Prices of chemical materials such as resins and adhesives are linked to oil and natural gas prices. If the geopolitical conflict (e.g. Russia-Ukraine war) continues or the cost of energy transition is transmitted, the price of chemical raw materials may continue to rise.

2. New energy power demand explosion

Wind power, photovoltaic and energy storage installed capacity growth: global carbon neutral target to promote new energy power infrastructure investment, transformers, cables and other equipment demand surge, a direct boost to insulating paper demand.

Expansion of electric vehicle charging network: High-voltage fast-charging piles and power grid upgrades require more insulation materials.

3. Environmental protection policies

Carbon tariffs and green manufacturing requirements: Policies such as the EU's Carbon Border Tax (CBAM) may increase compliance costs for energy-intensive papermakers, indirectly pushing up prices.

Cost of recyclable material substitution: If the policy mandates the use of renewable fibers or bio-based resins for insulating paper, short-term costs may rise due to immature technology.

4. Geopolitical and Supply Chain Risks

Risk of key raw material origins: Climate anomalies or political unrest in major wood pulp producing regions (e.g. Brazil, Canada) may impact the supply chain.

Logistics cost volatility: events such as the Red Sea crisis and Panama Canal drought, if prolonged, may push up global transportation costs.

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