Reasons for raw material rise

As a supplier of plastic bags for export, the price of raw materials has been rising. What is the reason for the rising price of raw materials?

As we all know, plastic bags are made of polyethylene, polypropylene, polyvinyl chloride and other raw materials. Most of the plastic is a polymer formed by polymerization of by-products extracted from petroleum and other fossil raw materials.

1. As the price of oil keeps rising, the price of raw materials keeps rising

2. Supply and demand resonance

3. Impact of the epidemic

Raw material prices have risen, some of which are caused by the structural shortage of supply and shipping due to the epidemic. The epidemic has caused the shortage of production capacity in some countries, and a large number of raw material supply regions have stopped production or limited production. In addition, the decline in international logistics capacity has led to a surge in freight rates for shipping container ships and prolonged delivery cycle, which has led to the continuous global price rise of raw materials.