What is actually inside a FOB quotation?
When a Chinese transformer factory sends you a FOB quotation, the number on the page is not just "the price of the transformer." It is a bundle: the cost of the machine, the cost of getting it from the factory floor to the ship's rail at the named port, and the exporter's margin — all compressed into one figure. Buyers who do not know what is inside that figure cannot compare quotes fairly, and cannot push back on price with confidence.
This guide opens the black box of a FOB Qingdao quotation from a real distribution transformer exporter (Shandong Yaqing Electric Power, QDTB). You will see the five building blocks behind the number, why copper moves the price up and down, what the real 2026 price tables look like, and — just as important — what you still pay after the FOB price.
FOB vs EXW vs CIF: where the supplier's responsibility ends
Before the cost breakdown, the term itself has to be precise. Under Incoterms 2020:
- EXW (Ex Works) — the supplier's responsibility ends at the factory gate. Every cost after that is yours: trucking, port, customs, ocean freight, insurance.
- FOB (Free On Board) — the supplier delivers the goods on board the vessel at the named port (here, Qingdao). The seller pays inland haulage, export customs, port charges and loading; the buyer takes over from the moment the goods are on the ship.
- CIF (Cost, Insurance, Freight) — on top of FOB, the seller also pays ocean freight and marine insurance to the destination port. This is why a CIF price is always higher than the FOB price of the same transformer.
Most transformer buyers in Africa, the Middle East, Southeast Asia and Central Asia ask for FOB Qingdao or CIF their port. When you see "FOB Qingdao," the transformer, its export packing, the truck to the port, the port handling and the export customs clearance are all included. Ocean freight is not.
The five building blocks of a FOB Qingdao price
Take any quotation for a standard copper-wound distribution transformer and the money divides roughly like this (ranges vary by rating and design):
- Raw materials — 55–65%. Copper (windings), grain-oriented silicon steel (core), insulation (pressboard, paper, varnish), transformer oil or cast resin, tank steel, bushings, tap changers, conservators. In a copper-wound transformer, copper and silicon steel are the two dominant line items, which is why copper price moves are so visible.
- Manufacturing and labour — 15–20%. Core cutting and stacking, winding, drying, assembly, welding of the tank, oil filling, final finishing. Labour in China is efficient, but a large transformer still takes days of skilled work.
- Testing and quality control — 3–5%. Full routine tests per IEC 60076 (ratio, winding resistance, impedance, no-load and load losses, dielectric, temperature rise) plus the test report you receive. Many factories now do third-party witness testing on request.
- Export packing — 2–3%. Export-grade wooden crates, moisture barrier, desiccant, shock indicators on large units. Proper packing is cheap insurance — it is not where a serious supplier saves money.
- Inland haulage, port charges and export formalities — 2–4%. Trucking from the factory to Qingdao port, port handling, export customs declaration and loading. For Shandong-based manufacturers this leg is short and cheap; for factories far inland it grows noticeably.
Whatever remains after covering the above is the exporter's margin — typically a single-digit to low-teens percentage for standard catalog products, thinner when copper is expensive.
Copper is the biggest moving part
Copper is the largest raw-material cost in a copper-wound transformer, so suppliers quote against a copper reference and adjust as the market moves. QDTB's pricing engine is anchored to the LME copper price, and every copper-wound model carries a transparent sensitivity:
- Anchor: LME copper $14,185/ton (2026-08-23)
- Rule: ±$1,000/ton of copper moves copper-wound prices by about ±3%
That simple rule explains most of the "why did the price change since last month" conversations. It also explains why two factories quoting the same kVA at different dates — or anchoring to different copper prices — can land on visibly different numbers without either being dishonest.
Real 2026 FOB Qingdao reference prices
Here are copper-anchored FOB Qingdao reference prices for the two most common distribution transformers, standard designs (copper winding, 10 kV / 0.4 kV, Dyn11, IEC 60076). Every model maps one-to-one to a live product page with an interactive quote calculator.
| Capacity | Oil-immersed S13-M (FOB) | Dry-type SCB13 (FOB) |
|---|---|---|
| 100 kVA | $1,650 | $2,950 |
| 200 kVA | $2,750 | $5,000 |
| 315 kVA | $3,850 | $7,100 |
| 500 kVA | $5,400 | $10,000 |
| 630 kVA | $6,600 | $10,200 |
| 800 kVA | $7,700 | — |
| 1,000 kVA | $9,100 | $17,100 |
| 1,600 kVA | $12,900 | $24,400 |
| 2,000 kVA | $15,200 | $28,900 |
| 3,150 kVA | $21,300 | — |
| 5,000 kVA | $30,000 | — |
Prices above are computed from the anchored LME copper price of $14,185/ton. The dry-type premium over oil-immersed at the same kVA runs roughly +80% to +150%, driven by cast-resin insulation and cooling equipment. They are reference prices for standard designs — special voltages, accessories, higher loss grades or non-standard builds move the number.
Why two quotes for the same kVA can differ by 30%
When two factories quote the same nominal rating at very different prices, one of these is usually the reason:
- Copper vs aluminium windings. Aluminium-wound transformers are cheaper to make but carry higher losses and a shorter practical life under load. If one quote is far below the market, check the winding material first — it is the single most common hidden downgrade.
- Loss grade and core material. S11, S13 and S20 (amorphous) cores have different no-load losses, and the better grades cost more. A cheap quote often means a cheaper, lossier core — and you will pay for that difference in electricity every year (see our guide on transformer total lifetime cost).
- Accessories and configuration. Off-load vs on-load tap changer, conservator with or without nitrogen seal, oil-immersed vs dry-type bushings, higher insulation class, special impedance — each line changes the bill.
- Certification and testing. IEC routine tests are baseline; type tests, third-party witness testing, or market-specific certification (CE, GOST/EAC, UL) add real cost.
- Copper anchor date. As explained above, a quote anchored to a different copper price is not comparable without adjustment.
A 30% spread on paper usually collapses to single digits once you standardise winding material, loss grade, accessories and the copper anchor. That is exactly why the checklist at the end of this article exists.
What you still pay after the FOB price
Knowing the FOB price is only the first step of your landed-cost calculation. From Qingdao to your site you still pay:
- Ocean freight. A 20–40 ft container or break-bulk cargo to Africa, the Middle East, Southeast Asia or Central Asia — varies by route and season, often the single largest post-FOB item.
- Marine insurance (covered by the seller only under CIF, otherwise yours).
- Destination port charges, customs clearance and import duty in your country.
- Inland delivery from the destination port to the project site.
Ask your supplier for a full landed-cost picture — many will happily arrange CIF or DDP and give you a door-to-door number, which is what your budget actually needs.
How to compare FOB quotes fairly
Before you accept any FOB price, confirm these eight points in writing so the quotes are actually comparable:
- 1. Winding material: copper or aluminium?
- 2. Loss grade: S11 / S13 / S20 (oil) or SCB10 / SCB13 / SCB15 (dry)?
- 3. Core material: conventional grain-oriented or amorphous?
- 4. Standard and test scope: IEC 60076 routine tests included? Type tests? Third-party witness?
- 5. Voltage and vector group (e.g. 10 kV / 0.4 kV, Dyn11) and impedance.
- 6. Accessories list: tap changer type, conservator, bushings, oil, cooling.
- 7. Copper price anchor and date used in the quotation.
- 8. Delivery term and port (FOB Qingdao vs CIF destination) and lead time.
Standardise these eight points and the market becomes transparent. Skip them and you are comparing apples to oranges.
Bottom line
A FOB Qingdao price is a transparent bundle: materials, manufacturing, testing, export packing, inland haulage and margin — with copper as the honest, explainable variable. When you understand the bundle, you can compare quotes fairly, negotiate on the real drivers (loss grade, copper anchor, accessories) instead of on thin air, and plan a landed cost that will not surprise you at the port.
Want real numbers for your rating? Browse the oil-immersed transformer range or the dry-type transformer range — every model shows its live copper-adjusted FOB Qingdao reference price and opens an interactive quote calculator. Or use the Selection & Price Guide 2026 to size and price in one step.