Analysis: Plastic Market in March 2026 - Crude Oil Fluctuations, Capacity Expansion and New Energy Demand

In early March 2026, the plastic market showed a warming trend. Brent crude oil exceeded 1/barrel, with geopolitical factors driving short-term price fluctuations. CRUDE OIL MARKET Crude oil prices surpassed 1/barrel on March 6. The cost transmission effect from rising crude oil is evident in the domestic chemical market. Polypropylene (PP) granule market price reached 7,625 yuan/ton, with a single-day increase of 2.38%. ENGINEERING PLASTICS According to data from Sonnens, among engineering plastic price changes on March 3, 4 products increased. PA6 market performed strongly, with an increase of 8.59%. Supported by price increase letters from SABIC and Asahi Kasei, PC market maintains high operation. CAPACITY DYNAMICS Despite increased market volatility, enterprise expansion enthusiasm remains high. Ruifeng Materials' 60,000 tons/year engineering plastic additives project is advancing, with phase I 20,000 tons/year expected to start production by end of 2026. APPLICATION AREAS The main application areas for modified plastics remain automotive and home appliances, accounting for over 50%. New energy vehicle lightweight demand has become an important growth point. INDUSTRY OUTLOOK In the short term, crude oil price fluctuations remain the biggest uncertainty. Engineering plastic prices are expected to remain high, but the increase rate may slow down. FOCUS: 5th Bio-based and Degradable Materials Industry Conference to be held in Suzhou on March 19-20.