Rising crude oil and naphtha prices, driven by escalating geopolitical tensions in the Middle East, are disrupting China's petrochemical supply chain. This cost surge is cascading through intermediates to final products like polyester, styrene, and plastics, creating a market with inflated prices but few transactions. Overseas buyers should monitor potential production cuts and supply shortages in key Chinese chemical sectors.
Price surge and market paralysis
According to a report by the Chinese futures publication Futures Daily on April 12, crude oil and naphtha prices have spiked sharply due to ongoing Middle East conflicts. This has directly impacted downstream chemical markets, with benzene spot prices jumping by as much as 2,500 yuan per ton in a single day. Most chemical product markets now show prices without actual transactions, and some sellers have halted sales altogether.
Impact on polyester and downstream products
Polyester (PET) bottle-grade raw material prices have surged from 6,200 yuan per ton at the beginning of April to 8,380 yuan per ton on April 12, a rise of approximately 35%. Zhang Chunyan, a PET analyst at Zhuochuang Information, noted that while initial daily increases of 100-200 yuan per ton were absorbed by the market, the worsening Middle East situation has led to daily jumps exceeding 1,000 yuan, causing trading suspensions and sales holds.
Supply-chain implications for buyers
Wu Zhiqiao, head of energy and chemicals at Green Dafutures, highlighted extreme volatility, with spot and futures price spreads widening dramatically for polyolefins. He warned that if raw material costs continue to rise without clear domestic demand improvement, downstream manufacturers in infrastructure, textiles, home appliances, and automotive sectors may face margin compression, leading to reduced output or production halts. This could disrupt supply for overseas buyers relying on Chinese chemical exports.
What buyers should watch
Overseas importers and distributors should closely monitor price trends and availability of key Chinese petrochemical products, especially polyester, styrene, and plastics. The current market is characterized by price-only listings with minimal actual trading, and long-term contracts are being avoided due to profit uncertainty. Buyers may need to seek alternative sourcing or negotiate shorter-term agreements to mitigate risks from potential supply disruptions.
Source: Read the original report | Published: March 13, 2026