Market & Pricing: Middle East Tensions Trigger Global Surge in Plastics Prices
In April, driven by the escalating geopolitical conflict in the Middle East, costs across the global plastics supply chain surged significantly, triggering a wave of substantial price hikes.
Chemical Giants Announce Widespread Price Increases
BASF:On April 27, the company announced a second round of price increases for its global portfolio of plastic additives (including antioxidants, light stabilizers, etc.), with hikes reaching up to 25%. This marks BASF's second concentrated price adjustment for these specific products since the beginning of 2026; the first increase occurred on March 4, with a maximum hike of 20%.
Dow Chemical: In April, the company announced an increase in polyethylene (PE) prices, raising them by 30 cents per pound-a hike of approximately 60%-and plans a further increase of 20 cents per pound in May. The company's CEO stated that the conflict in the Middle East has impacted approximately 50% of global ethylene and polyethylene production capacity.
Analysis of the Price Surge
Disruptions to shipping through the Strait of Hormuz have caused the price of naphtha-a critical raw material for plastics production-to skyrocket. As a major global hub for petrochemical production, the Middle East region's ongoing conflict continues to destabilize supply chains, driving up costs for energy, logistics, and raw materials.
Domestic Market: Contracting Supply vs. Weak Demand
The domestic market currently presents a complex and divergent landscape. On the supply side, April marked the peak period for spring maintenance shutdowns at domestic polyethylene (PE) plants; operating rates dropped to 70.47%, resulting in a marginal contraction of supply. However, demand remains sluggish; the traditional "Golden March and Silver April" peak season failed to meet expectations, and operating rates in downstream sectors-such as agricultural films and piping-remain at historically low levels for this time of year. Market analysts predict that plastics futures prices will continue to exhibit a volatile, consolidating trend throughout May.
Policies & Regulations: Tightening Environmental Standards
April saw the introduction of several new policies and regulations relevant to the plastics industry, reflecting a continued intensification of environmental oversight.
Special Campaign to Regulate Express Delivery Packaging
Effective April 20, the Jiangxi Provincial Postal Administration launched a month-long special campaign across the province's postal and express delivery sectors to crack down on the use of non-degradable plastic packaging. The initiative focuses specifically on addressing prominent violations, such as the unauthorized use of non-degradable plastic bags, plastic adhesive tapes, and single-use plastic woven sacks. New National Standards Approved
New National Standard for Biodegradable Plastic Bags: Approved and issued by the National Standardization Administration, this standard will officially take effect on January 1, 2027.
New National Standard for Limits on Harmful Substances in PVC Flooring: Designated as GB 18586-2026, this standard will be implemented starting October 1, 2027, replacing the previous standards GB 18586-2001 and GB 18587-2001.