Plastic Packaging Raw Materials Rise Across the Board — PET/PVC/PS/PP/PC Prices Surge

Affected by the combination of escalating geopolitical conflicts in the Middle East, surging international crude oil prices, and tightening global supply chains, the global chemical raw material market has experienced sharp fluctuations recently.Prices of core raw materials for the plastic packaging industry, including PET, PVC, PS, PP, PC, have risen across the board, with general increases of 8%–15%.

Some grades have risen by more than 500 RMB per ton in a single day, putting the industry under a new round of cost pressure.

As the core upstream of plastic raw materials, international crude oil prices have soared sharply in the past two weeks.WTI crude oil has broken through 90 USD per barrel, and Brent crude has stood above 95 USD per barrel, an increase of more than 60% since the beginning of the year.The cost transmission chain of crude oil – naphtha – olefins – plastic pellets has been fully activated, directly pushing up the pricing of downstream raw materials.

The situation in the Middle East remains tense, and shipping through the Strait of Hormuz is blocked, affecting about 30% of global seaborne crude oil transportation.

Supply disruptions have occurred in major chemical exporting countries such as Iran, leading to reduced arrivals of imported raw materials, tight spot supply in the market, and strong reluctance among traders to sell.

March marks the peak resumption season for downstream industries including packaging, food, home appliances, and electronics, with concentrated order releases.

Meanwhile, more maintenance of upstream petrochemical units and lower operating rates have further tightened the supply-demand balance, driving up prices.