The impact of the Middle East War on China's PE Coated Paper
Published on:
2026-07-14 16:04
Increase in raw material prices: Geopolitical conflicts in the Middle East have led to transportation disruptions in the Strait of Hormuz, causing a rise in crude oil prices and subsequently driving up the prices of chemical products. The prices of main raw materials for PE laminated paper, such as polyethylene (PE), and other plastic particles have been inflated, resulting in an increase in the prices of PE films and other materials.
Supply risk: Iran is China's fourth-largest import source. In 2025, China imported a total of 112.5 million tons of polyethylene from Iran, accounting for 8.39% of China's total PE imports. The reliance on high-pressure polyethylene (LDPE) is relatively high. If the supply from Iran is interrupted or the shipping risks increase, it may directly affect the arrival of Iranian supplies at China's coast, altering the domestic supply-demand balance.
Market volatility intensifies: The outbreak of geopolitical conflicts has injected tremendous uncertainty into the market, and market volatility is expected to increase. Prices are likely to gain upward momentum following crude oil. In the short term, market volatility is expected to intensify, and prices are expected to follow crude oil to rise. The high-pressure (LDPE) variety, due to its high dependence, may perform relatively strongly. In the medium to long term, the trend will return to the fundamentals.
To sum up, the war in the Middle East has a significant impact on China's PE laminated paper, mainly manifested in the increase in raw material prices, the increase in supply risks, and the intensification of market volatility. These factors may lead to an increase in the cost of PE laminated paper, thereby affecting its terminal selling price and market demand.
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