The market has been in an upward trajectory for over two months, driven by Middle East disruptions tightening global petrochemical supply chains. Prices for major resins surged sharply from March, with some moderation in May but remaining at elevated levels. US producers are gaining export advantages due to relatively stable domestic operations.  

• Negotiation Deadlock: President Trump has directed officials to prepare for a long-term naval blockade of Iranian ports. In response, oil prices surged past $120 per barrel on April 30 as the Strait of Hormuz remains closed.

[Key Impacts]

According to the latest assessments from Formosa Plastics Group and Formosa Chemicals (reported April 13, 2026), even if the US-Iran war ends, energy and petrochemical feedstock shortages will remain tight and are likely to persist until the end of 2026. This will severely affect global market supply but could benefit Asian petrochemical recovery earlier. 

• The US and Iran agreed to a two-week temporary ceasefire on April 7-8, 2026, which also involves Israel. The ceasefire includes efforts to reopen the Strait of Hormuz, a critical global oil route previously disrupted by Iranian control and toll collection.

Taiwan faced plastic bag shortages due to petrochemical volatility. The Executive Yuan coordinated with CPC to start up the No.4 cracker early, adding ~19,000 tons of ethylene in April (enough for ~340 million bags); further increases planned for May. Private firms pledged sufficient domestic supply. Some vendors report sharp price hikes and have switched to daily quoting.

On April 3, 2026, Iran shot down two US combat aircraft for the first time in the conflict. A two-seater F-15E Strike Eagle fighter jet was downed over Iranian territory; one crew member was rescued by US forces, while the other remains missing, prompting a dangerous search-and-rescue mission. Separately, Iran claimed to have struck a US A-10 Thunderbolt II (“Warthog”) near the Strait of Hormuz, forcing the pilot to eject. US President Donald Trump stated that these incidents “will not affect” ongoing indirect ceasefire talks and reiterated that core US strategic objectives (degrading Iran’s missile, drone, and naval capabilities) are “nearing completion,” with operations expected to wind down in the coming weeks. However, Trump also vowed to strike more Iranian infrastructure if no deal is reached, including threats to hit power plants and other targets to “send Iran back to the Stone Age.” Iran continues retaliatory missile and drone attacks on Israel and regional US allies, while the US and Israel have expanded strikes on Iranian bridges, steel plants, and other infrastructure near Tehran. Global oil prices are rising due to disruptions in the Strait of Hormuz.

Many gas stations in Vietnam, especially in Hanoi, have imposed purchase limits (e.g., ~US$2 per motorbike, US$12–20 per car) due to surging prices and supply fears. Some stations are temporarily closed. Government responded by scrapping import tariffs until end-April, urging work-from-home, and accelerating ethanol-blended fuel (E10) rollout to reduce fossil fuel dependence. Supply is basically secured but panic buying eased after interventions.

Ongoing Middle East conflict has severely disrupted shipping through the Strait of Hormuz, causing major export delays for mainland Chinese companies. Shenzhen’s bonded warehouse has accumulated 18,000 cubic meters of goods, reaching 95% capacity and nearing full.

• Sharp resin price surges due to geopolitical tensions — Middle East conflicts (including disruptions in the Strait of Hormuz) have caused crude oil prices to spike, pushing up costs for key feedstocks. Polyethylene (PE), polypropylene (PP), polystyrene (PS), PVC, and ABS have seen significant increases — some reports note up to 60% rises in certain Chinese markets for ABS and related materials. In the US and globally, PS joined PVC and engineering resins in posting price hikes early 2026, linked to seasonal demand, inventory building, and higher feedstock costs.