Polyethylene Prices Surge Amid Geopolitical Tensions

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2026-03-13 09:32:56

Recently, escalating international geopolitical conflicts have driven a sharp rise in crude oil prices. This, combined with persistent tightening on the supply side of polyethylene (PE)—a material heavily reliant on imports—has led to a notable surge in the domestic plastic raw material market. Data shows that prices of mainstream varieties such as LLDPE, LDPE, and HDPE have increased by more than 10% in a short period, with LDPE recording the steepest rise of over 16%.

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According to commodity market monitoring, the average price of LLDPE (7042) rose from 6,816 RMB/ton on March 2 to 7,566 RMB/ton on March 6, an increase of 11%. Over the same period, LDPE (2426H) climbed from 8,916 RMB/ton to 10,366 RMB/ton, up 16.26%, while HDPE (5000S) increased from 7,370 RMB/ton to 8,295 RMB/ton, a gain of 12.55%.

Cost Side: Geopolitical Tensions Ignite Crude Oil Prices

Stricter shipping controls in the Strait of Hormuz have pushed crude oil prices higher, providing strong cost-side support and driving a broad-based passive rise in PE prices.

Supply Side: Import Disruptions and Plant Maintenance

China’s PE imports are highly dependent on the Middle East, which accounts for nearly 50% of total PE imports. Iran, in particular, is the largest source of LDPE imports, contributing around 14%. With overall LDPE import dependence nearing 50%, the market has been particularly sensitive to supply-side shocks.

In response to rising raw material costs, Jointhope is proactively adjusting its strategies to navigate the current complex market environment. Given the recent sharp increases in material prices, we recommend that purchasing enterprises remain cautious and rational. At this stage, orders should be placed with care—observing price trends and waiting for the market to stabilize may be a prudent approach. In the short term, prices remain highly sensitive to geopolitical developments and supply-side sentiment, and a market correction is possible. Avoiding panic buying can help better manage cost risks. At the same time, building long-term partnerships with suppliers that offer strong supply chain integration and technical expertise remains an effective way to navigate market fluctuations with greater resilience.

At the end of the day, beyond all the charts, prices, and market shifts, what we truly hope for is simple: a peaceful world. Because when the world is at peace, trade flows freely, businesses grow steadily, and prosperity reaches more people. Joinothope dreams of that day—and until then, we’ll keep doing our part, one step at a time, together with you.We hope that a better world peace.