Plastic prices surge: Dow Chemical raises polyethylene by 30 cents per pound in April, another 20 cents per pound in May

The blockage of shipping through the Strait of Hormuz has affected the global petrochemical supply chain, causing the price of naphtha, an essential raw material for plastic production, to rise sharply. In the United States, many plastic packaging suppliers are experiencing significantly increased production costs and have had to pass the pressure onto downstream customers. American chemical giant Dow Chemical stated that the conflict in the Middle East has impacted about 50% of the world’s ethylene and polyethylene capacity, and the supply-demand imbalance has driven prices to soar. Dow Chemical announced in April that it would raise polyethylene prices by 30 cents per pound, an increase of about 60%, and plans to raise another 20 cents per pound in May. (CCTV Finance)