The price of plastic pellets is determined by many factors that affect the production process and global market demand. The main factors that affect the price of plastic pellets are:
- Oil price : Crude oil is the main raw material used in the production of plastic pellets. The stability of oil prices affects the production cost. When oil prices rise, the cost of producing plastic pellets also increases. In addition, oil production is an energy-intensive process. Therefore, energy prices also affect the price of plastic pellets.
- Other raw material costs : In addition to crude oil, which is the main raw material, there are other raw materials used in the production of plastic pellets, such as naphtha, various polymers, chemicals, and composite materials. When the price of these raw materials increases, the cost of producing plastic pellets also increases.
- Market demand : It affects the price of plastic pellets. If there is high demand, the price can increase. But if there is more production than demand or a long holiday situation, such as the Chinese New Year (China stops production for 7-15 days), causing market demand to decrease, the price may decrease.
- Tax policies and laws : Tax policies and laws related to production and trade affect the price of plastic pellets, such as the World Trade Organization (WTO) setting tariff barriers. Non-tax regulations, such as carbon dioxide content, child labor-free standards
- Unusual situations or wars : In the event of a war, shipping is unable to travel normally and must travel around the war route, causing the price of plastic pellets to continuously increase. Or another incident where there were no containers in Asia in the past. It caused the freight rate of containers to increase by 2-3 times, resulting in higher plastic pellet prices.
Understanding these factors will help in analyzing and predicting changes in the price of plastic pellets in the world market.
Interested in ordering plastic pellets or additives, contact: Petro plus Chemical Co., Ltd.
