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Petrochemical Prices Rise as Demand for General-Purpose Resins Rebounds
Process Industries · Chemicals: Major Diversified · economic_daily · 2026-09-17
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Rising demand and high oil costs have pushed up prices for PVC, PS, PP, and ABS, providing a potential earnings boost for Formosa Plastics and other suppliers.
What Happened
Market Demand Recovery: The market for general-purpose resins has seen a significant uptick in demand, with prices for PVC, PS, PP, and ABS rising by $10 to $70 per metric ton. This price hike is expected to provide a positive boost to the operational performance of major suppliers like Formosa Plastics, China General Plastics, Grand Pacific Petrochemical, and Delta Petrochemical.
Cost and Inventory Drivers: Despite a slight easing of supply concerns in the Middle East, recent surges in oil prices—which briefly topped $105 per metric ton—have provided a strong floor for petrochemical costs. Low inventory levels, combined with speculative trading activity, have further fueled the upward momentum in resin prices over the past week.
Product-Specific Gains: ABS and PS, widely used in home appliances and automotive interiors, saw the largest increases of 3.8% and 4.9% respectively. Medical-grade polypropylene (PP) rose by 2.4%, while construction-grade PVC saw a more modest increase of 1.2% per metric ton.
Operational Outlook: The combination of rising production costs and recovering downstream demand has created a favorable environment for petrochemical manufacturers. Analysts suggest that these price adjustments will likely support improved profit margins for the sector throughout the coming quarters.