Plastic prices surge: Dow Chemical increases polyethylene by 30 cents per pound in April and an additional 20 cents per pound in May

Glonghui, April 25 | According to CCTV Finance, transportation disruptions in the Strait of Hormuz have impacted the global petrochemical industry chain, causing the price of naphtha, a key raw material for plastic production, to soar. In the United States, many plastic packaging suppliers have seen a significant increase in production costs and have had to pass this pressure on to downstream customers. On April 23, Jim Fitterling, CEO of American chemical giant Dow Chemical, stated in an interview that the Middle East conflict has affected about 50% of global ethylene and polyethylene production capacity, leading to a supply-demand imbalance and a sharp rise in prices. In April, Dow Chemical announced a polyethylene price increase of 30 cents per pound, a rise of about 60%, and plans to raise prices by another 20 cents per pound in May. In addition, Emerald Packaging, headquartered in Union City, California, is a supplier of plastic packaging for agricultural products. Since the outbreak of the Middle East conflict, raw material and transportation costs have continued to rise rapidly, making it difficult for the company to bear these escalating costs.