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Price And Market Trend
Mar. 09, 2026
Recently, affected by the international situation, market supply and demand, and multiple factors in the industrial chain, the global raw material market has continued to fluctuate. Prices of plastic and chemical raw materials have risen rapidly, putting significant pressure on industrial production, costs and quotations. This round of price increases is not caused by a single factor, but the combined effect of energy, supply, demand, logistics and comprehensive costs. Based on actual market conditions, the specific reasons are as follows：
1. Impact of the International Situation
The continuous tension in the Middle East has directly disrupted the efficiency and safety of the Strait of Hormuz, a vital global oil transportation channel, tightening expectations for international crude oil supply and driving up crude oil prices sharply. As the core upstream raw material of plastic and chemical products, the rise in crude oil prices quickly transmits downstream, directly pushing up the production costs of packaging materials such as polyethylene (PE) and LLDPE.
2. Low Supply and Inventory
Domestic petrochemical enterprises have entered the spring intensive maintenance period, with many key production lines reducing output or shutting down, lowering the overall operating rate and significantly reducing spot supply. Coupled with previously low social and enterprise inventories, tight market supply strongly supports higher prices.
3. Increased Demand from Resumed Work
Since March, the packaging and plastic processing industries at home and abroad have fully entered the peak period of resumption of work and production. Downstream enterprises have seen a concentrated release of procurement demand, with both rigid demand and restocking demand rising simultaneously. Under the tight supply pattern, the supply-demand relationship further drives raw material prices higher.
4. Fluctuating Shipping Costs
The international shipping environment is complex and volatile, with unstable ocean freight, fuel costs and domestic logistics expenses. Rising logistics costs further increase the overall procurement cost of raw materials delivered to factories.
5. Higher Supply Chain Costs
Affected by global inflation, exchange rate fluctuations, stricter environmental regulations and higher safety production standards, the overall production and operation costs across the entire industrial chain have risen significantly compared with earlier periods. The increased costs from upstream production to midstream trade and downstream processing form long-term support for prices.
In summary, this round of raw material price increases is the result of multiple factors, featuring sudden occurrence, fast transmission and wide impact. Before clear signs of easing in the international situation, supply-demand structure and cost side, raw material prices will remain high and volatile. We ask all partners to fully understand the current complex market environment, strengthen coordination and communication, and jointly address the phased challenges facing the industry.
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