banner
High oil prices hit the plastics industry, and some raw materials may face a crisis of "cutting supply"
Time:Mar 10, 2022

On March 8, China's energy and chemical products continued to go up and down, high oil prices hit the downstream of the plastics industry, and many factories were operating at a reduced load. Under the dual pressure of supply and cost, domestic and foreign companies have sent letters to announce the increase.

As international oil prices hit a 14-year high, the impact of the soaring prices of this global "king of commodities" began to spread to the downstream of the petrochemical industry chain, with the plastics industry bearing the brunt.

Many plastics makers have cut back on activity as profit margins have been squeezed by soaring costs, industry sources said, in the first sign that the demand destruction caused by soaring oil prices could spread to other industries.

Soaring crude prices and doubts about the supply outlook for the oil-derived naphtha from Russia are challenging the economics of producing plastics at crackers in South Korea, Taiwan and Malaysia. It is also an early sign that the Russian-Ukrainian conflict could lead to operational difficulties for industries that depend on upstream raw materials.

High shipping costs have also compounded the cost challenge and led companies to curtail production now rather than risk huge losses.

Profit margins on commodities including ethylene and propylene, which are used to make plastics, are already low, and since the outbreak of the Russian-Ukrainian conflict, profit margins in related industries have shrunk further.

The resulting increase in the price of plastic products such as PE, pvc, pp, etc. is also a reason.

Trustworthy Disposable Protective Products Supplier
Committed to provide quality disposable protective products that meet all your needs.

Leave A Message

Leave A Message
If you are interested in our products and want to know more details,please leave a message here,we will reply you as soon as we can.

Home

Products

skype

whatsapp