China is experiencing a domino effect of price increases across its industrial supply chain, driven by the Iran conflict and surging international crude oil prices. Overseas buyers of petrochemicals, construction materials, and downstream consumer goods should prepare for sustained cost pressures as Chinese producers pass on higher raw material costs, with some products already rising by up to 20%.
Supply-chain impact
Brent crude oil prices spiked to USD 120 per barrel on March 9, and despite subsequent adjustments, remain elevated. This has triggered price increases throughout the industrial chain, starting with natural gas, gasoline, and diesel, then cascading to basic chemicals such as ethylene, propylene, and methanol. The impact has now spread to aromatics, PTA, chemical fibers, and coatings, and is reaching end-consumer goods like construction materials and textiles.
Price surge across chemical products
According to a report from Chinese research firm Zhuochuang Information, prices of nearly all chemical products—including propylene, olefins, adipic acid, phenol, and acetone—have risen recently. The firm noted that March to May is a concentrated period for scheduled maintenance at Chinese refineries, which is exacerbating the upward price pressure. Huatai Securities added that the intensifying geopolitical conflict is driving this price domino effect, with the trajectory depending on developments in the Middle East.
What buyers should watch
Chinese producers are actively notifying customers of price increases. Securities Times reported that major companies including Wanhua Chemical, Kingfa Technology, Keshun Waterproof, and Oriental Yuhong have all raised prices. Oriental Yuhong, a supplier of waterproof coatings, adhesives, reinforcement materials, and asphalt, has increased product prices by up to 20%. The company stated that price hike notices are widespread across the industry and that further increases are under consideration.
China sourcing context
For overseas importers and distributors sourcing from China, this price escalation signals potential margin compression and the need to renegotiate contracts or seek alternative suppliers. The combination of high crude oil costs, scheduled refinery maintenance, and geopolitical uncertainty suggests that price increases may persist through at least Q2 2026. Buyers should monitor Middle East developments closely, as any further escalation could prolong or deepen the current price trends.
Source: Read the original report | Published: March 12, 2026