Since March 2026, the global chemical and plastics markets have faced unprecedented shocks due to the sharp deterioration of geopolitical conflicts in the Middle East and shipping disruptions in the Strait of Hormuz, regarded as force majeure events. International crude oil prices (WTI, Brent) have risen sharply, driving up costs across the entire petrochemical industry chain based on crude oil and triggering severe strains in global supply chains.
Prices of basic chemical raw materials have soared: more than 100 chemical raw materials surged in the short term (from early March to mid-March). Among them, key intermediates such as acrylic acid, hexamethylenediamine, methylene chloride, butadiene, pure benzene and styrene recorded the most dramatic gains. For instance, hexamethylenediamine rose by over 4,000 RMB/ton in one month, surpassing 23,000 RMB/ton; acrylic acid jumped by 106% in just 10 days.
The plastics market rose across the board: price increases of crude oil and upstream monomers quickly transmitted to downstream plastics. On March 19, prices of domestic ABS, PS, PP, PE, EPS and other plastic products rose collectively, with daily gains generally ranging from 200 to 600 RMB/ton. For example, ABS (Zhangzhou Chimei/757K) rose 500 RMB/ton in a single day, and mainstream EPS grades in Dongguan market generally increased by 300 RMB/ton.
Core drivers: The fundamental cause of this round of price hikes is the surge in crude oil prices and global supply chain disruptions triggered by geopolitical conflicts, coupled with industry capacity and environmental policies, forming a resonance of cost-push, supply contraction and strong bullish sentiment. It is predicted that prices of relevant chemicals will still have upward room in the short term.
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Post time: Mar-20-2026