Crude Oil Price Volatility Transmits to the Plastics Industry Chain: Global Chemical Giants Raise Prices, Engineering Plastics Costs Remain Under Pressure

Global crude oil markets have experienced notable fluctuations recently. Driven by supply-side uncertainties and logistics factors, international oil prices have seen considerable short-term swings, with the overall price center shifting notably higher than previous levels. This cost change is rapidly transmitting downstream along the industry chain, triggering multiple rounds of price adjustments from global chemical majors. This article outlines the current market situation and presents the latest pricing actions from industry leaders such as BASF and SABIC.

I. High Crude Oil Prices Pressure Raw Material Costs for Plastics

Crude oil is the fundamental raw material for plastic production. When crude oil prices rise, the prices of intermediate products such as naphtha, ethylene, and propylene follow suit, ultimately passing through to plastic resins. Although recent oil price movements have included alternating increases and decreases, the overall level remains high, significantly raising raw material procurement costs for plastic producers. Meanwhile, temporary disruptions in some international logistics channels have affected the normal transport of petrochemical products, further intensifying supply tightness expectations.

Against this backdrop, global chemical giants have been implementing price increases to cope with cost pressures.

II. Global Chemical Giants Announce Price Hikes: BASF and SABIC Lead

BASF – Multiple Rounds of Dense Price Increases

As a bellwether of the global chemical industry, BASF has implemented several rounds of price increases since March 2026, covering core engineering plastics categories:

• Effective April 1, 2026, BASF increased prices for caprolactam, polyamide 6 (PA6), and copolyamide (PA6,66) in North America by US$0.20 per pound (approximately RMB 3,175 per tonne).

• On March 4, BASF announced global price increases of up to 20% for its full range of plastic antioxidants, processing stabilizers, and light stabilizers, effective immediately from the announcement date.

• From mid-March, BASF raised Neol® neopentyl glycol polyol products by €350 per tonne in Europe, formic acid products by €250 per tonne, and some home care and industrial formulation products by up to 30%.

• Effective April 6 and April 15, BASF will further increase amine product prices and neopentyl glycol prices in North America, adding another US$176 per tonne on top of the US$155 per tonne increase implemented on March 12.

SABIC – High-end Resin Price Increases and Supply Reduction

SABIC, a globally leading engineering plastics supplier, has also taken active pricing measures. According to industry media reports, prices for SABIC’s high-end resin products have seen significant increases, with PPO unit prices rising from RMB 650,000 to RMB 1,000,000 per tonne. At the same time, due to supply-side disruptions, SABIC has declared force majeure on MEG (monoethylene glycol) and other products, with overseas operating rates falling to low levels. Import arrivals are expected to decrease significantly in the near term.

Other Chemical Giants Follow Suit

In addition to BASF and SABIC, international chemical majors such as Huntsman, Invista, Celanese, Covestro, and Evonik have also raised prices for engineering plastics and related raw materials since April 1, with increases generally ranging from 10% to 50%, forming a consensus for industry-wide price hikes. Key examples include:

• Invista’s PA66 products surged by RMB 5,400 per tonne in a single month, with core raw material hexamethylenediamine rising by as much as RMB 7,800 per tonne.

• Huntsman increased prices for polyurethane and downstream products sold in China by 30%, with its polymeric MDI listing price reaching RMB 23,000 per tonne.

• Celanese raised prices for engineering plastics including POM, PA6,66, PBT, ABS, high-temperature nylon PPA, and specialty nylons.

III. Plastic Market Prices Rise, Engineering Plastics Remain at High Levels

Driven by both major producer price increases and crude oil cost pressures, the plastic market has seen a clear upward move. According to market monitoring data:

• ABS plastic raw materials rose from approximately RMB 8,000/tonne to over RMB 13,000/tonne, an increase of more than 60%.

• PC plastic raw materials rose from approximately RMB 11,000/tonne to over RMB 16,000/tonne, an increase of more than 40%.

• PA66 prices briefly exceeded RMB 18,000/tonne, reaching an all-time high.

Even during periods of temporary oil price declines, engineering plastic prices remained firm. Early April data showed PA66 quotes around RMB 22,967/tonne, up 25.96% year-on-year; PC quotes around RMB 16,633/tonne, up 5.72% year-on-year; and LDPE quotes around RMB 12,033/tonne, up 26.44% year-on-year.

IV. High Costs Squeeze Oil-Based Route Profits, Industry Supply Contracts

Currently, the oil-based plastic production route faces significant cost pressures due to high oil prices, with losses exceeding RMB 2,000 per tonne. In contrast, the coal-based route maintains positive profit margins. Against this backdrop, some refining and chemical companies have appropriately reduced operating rates. First-quarter data showed a marked slowdown in apparent demand growth for major polyolefins: polyethylene (PE) apparent demand growth was approximately 3%, while polypropylene (PP) apparent demand growth was -3%.

Industry analysts believe that even if global logistics conditions gradually improve, the recovery of petrochemical product supply will take some time. This means the tight supply pattern for plastic resins is unlikely to reverse quickly in the short term, and cost support will persist.

V. Corporate Response and Market Outlook

The current plastic market is characterized by “firm offers but cautious trading.” Downstream processors have limited acceptance of high raw material prices and are purchasing only for essential needs. The market generally expects that the average crude oil price level for 2026 will be higher than in previous years, with the price center likely to fluctuate within the US$90–100 per barrel range.

For the engineering plastics industry, the key words at present are “efficiency” and “resilience.” In an environment of heightened raw material cost volatility and supply chain uncertainties, companies need to manage procurement timing and inventory levels more precisely, while also enhancing value-added and expanding profit margins through technology development and product innovation.

Our company is a comprehensive enterprise integrating import engineering plastics raw material trading, application development, product design, and molding manufacturing. As a long-term partner of internationally renowned brands such as BASF and SABIC, we leverage our global sourcing advantages and technical expertise to continue providing customers with stable, reliable raw material supplies and professional engineering plastics solutions. We welcome inquiries and cooperation from customers around the world.