Crude oil prices rise, PVC resin follows the rise

                                                                 Crude oil prices rise, PVC resin follows the rise

Recently, tensions in the Middle East have escalated, and the conflict between Israel and Iran has intensified, leading to more volatility in the international crude oil market and a sharp rise in crude oil prices. Affected by this, the price of PVC resin, which uses crude oil as raw material, has also risen.

As an important crude oil producer in the world, Iran has been damaged by the conflict, and its crude oil production capacity has dropped significantly. At the same time, Iran has blocked the Strait of Hormuz, an important crude oil channel, causing the price of crude oil to continue to rise. So far, it has risen by more than 15% compared with the same period last month. If the regional conflict escalates further, it may lead to a disruption in crude oil supply, and oil prices may continue to rise.

As an important product in the petrochemical industry chain, the price of PVC resin is highly correlated with the trend of crude oil. As the cost of crude oil rises, domestic PVC manufacturers have raised their quotations one after another, and the spot price of PVC in some regions has increased by more than 5% in a single week.

Since the second quarter, PVC resin has dropped from a high of 4950￥/ton to 4550￥/ton in early June, a drop of more than 10%. This conflict has exacerbated the rebound in PVC resin prices. If the conflict is not resolved, the price increase will not stop.

Chemical industry analysts said: PVC's raw materials ethylene and chlorine both rely on petrochemicals. The rise in crude oil prices has directly pushed up production costs. PVC prices may remain high in the short term.

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