2026 Plastic Raw Material Price Surge ABS/PC Soar Lianzhen Plastic Response

Since the beginning of 2026, the plastic raw material market has experienced some of the most severe price fluctuations in recent years.

The escalation of geopolitical conflicts on February 28 has severely disrupted the global petrochemical supply chain.

As one of the largest plastic raw material distribution centers in China, Dongguan Plastics City witnessed a buying frenzy.

A trader with over two decades of experience in the market told reporters that a grade of material he deals with had surged from a low of 7,800 RMB/ton last year to approximately 13,000 RMB/ton now, an increase of over 5,000 RMB per ton.

In the European spot market,polyethylene resin prices for packaging materials rose approximately 70% to 80% between February and April 2026. The CEO of Dow Chemical noted that the Middle East conflict has impacted approximately 50% of global ethylene and polyethylene production capacity. Since approximately 98% of plastics are derived from fossil fuels, the rise in raw material costs has directly driven up prices across the entire plastics industry chain.

II. Price Increases by Product Category

Industry data shows that the plastics market has experienced sharp volatility since the beginning of 2026. Key raw material price movements are as follows:

ABS Plastic Raw Materials: Prices surged from 8,000 RMB/ton to over 13,000 RMB/ton since March 1, an increase of over 60%. In mid-April, ABS (general-purpose grade) prices in South China ranged from 12,700 to 13,600 RMB/ton. Although this represents a pullback from the mid-March peak of 13,000 to 14,200 RMB/ton, prices remain significantly elevated by over 50% compared to pre-conflict levels (8,000-9,000 RMB/ton in late February).

PC Plastic Raw Materials: Prices rose from 11,000 RMB/ton to over 16,000 RMB/ton, an increase of over 40%. As of April 22, the PC blended benchmark price had retreated to around 16,133 RMB/ton. By June, PC spot prices were oscillating around 14,000 RMB/ton.

PVC: Recorded a single-day increase of 3.18% on March 16, 2026. Driven by rising coal prices, environmental protection-related production restrictions in major production areas, and stricter safety regulations, domestic calcium carbide supply has tightened and prices have continued to rise, directly pushing up production costs for calcium carbide-based PVC. As of June, PVC prices continue to show an upward trend with fluctuations.

PP (Polypropylene): Recorded a single-day increase of 3.46% on March 16, 2026. PP (raffia grade) saw a monthly increase of 1.81% in May.

III. Analysis of Price Increase Drivers

The sharp rise in plastic raw material prices is the result of multiple converging factors:

1. Geopolitical Conflict Disrupts Supply Chains

The Middle East conflict has impacted approximately 50% of global ethylene and polyethylene production capacity, with supply-demand imbalances driving sharp price increases. The Middle East accounts for approximately 14.2% of global ethylene production capacity, and geopolitical factors have hindered production and exports. Since the Middle East conflict, PVC prices have continued to rise, primarily due to increases in ethylene feedstock prices, leading to reduced operating rates and even production halts at both domestic and international ethylene-based PVC facilities.

2. Rising Crude Oil Prices Push Up Costs

The core cost of plastics has always been tied to petrochemical feedstocks. Since the beginning of 2026, international crude oil prices have remained in a high-range fluctuation pattern above $80/barrel, driving up prices of petrochemical feedstocks such as ethylene. The significant increase in crude oil and naphtha prices has directly squeezed profit margins for Asian and European manufacturers that rely on naphtha cracking.

3. Shift from Imports to Domestic Supply Intensifies Supply-Demand Imbalance

Affected by the Middle East conflict, some plastic raw materials that were previously imported have shifted to domestic procurement, further pushing up domestic market prices. Some companies reported that prices of certain materials had surged 30%-60% after shifting from imports to domestic supply. A tug-of-war over price increases is playing out between upstream plastic shortages and downstream weak demand.

4. Panic Stockpiling Amplifies Volatility

Geopolitical conflicts created expectations of structural supply chain shortages, triggering downstream panic stockpiling and upstream reluctance to sell, resulting in a "buying frenzy drives prices higher" cycle. Some rubber and plastics material companies reported "two to three price adjustments per day."

IV. Impact on the Industry

This round of raw material price increases has had varying degrees of impact across different segments of the industry chain:

Upstream: Higher raw material prices have led to improved profit margins for petrochemical companies.

Midstream (Compounding and Processing Companies) : Plastics processing companies in the middle of the industry chain have borne the brunt of the cost pressures. As the link between raw material suppliers and end-product manufacturers, compounders are the first to feel the significant cost burden.

Downstream (End-product Manufacturers) : Some strong end-product brands have passed on cost increases to consumers. However, amid weak market demand, more companies are hesitant to raise prices, leading to a stalemate in price negotiations with upstream suppliers.

V. Lianzhen Plastic's Response Measures

In the face of persistently high raw material prices, Lianzhen Plastic remains committed to a "customer-first" principle and has implemented multiple measures to protect customer interests:

1. Optimized Procurement Channels

Leveraging a diversified procurement system, we minimize the impact of raw material cost fluctuations on product pricing through multi-channel price comparison and strategic stockpiling.

2. Stable Pricing Mechanism

During periods of sharp market volatility, we maintain a flexible "case-by-case quotation, advance price locking" model to help customers lock in cost expectations and avoid budget overruns caused by sudden raw material price spikes.

3. Improved Production Efficiency

We absorb some of the cost pressures internally by optimizing extrusion processes, improving yield rates, and reducing energy consumption.

4. Transparent Communication

We keep customers promptly informed of raw material market dynamics and price trends, working with them to develop reasonable procurement plans and share risks during challenging times.

VI. Recommendations for Customers

Based on current market conditions, we recommend that customers:

Plan procurement in advance to avoid cost risks from urgent last-minute orders

Monitor raw material price trends and consider moderate stockpiling when prices are relatively low

Maintain close communication with Lianzhen Plastic — we will provide you with the latest market updates and pricing options

Lianzhen Plastic will continue to monitor raw material market dynamics and serve every customer with stable quality and competitive pricing.

If you have any questions or needs, please feel free to contact us.