Analysis of the impact of oil on the plastics industry

Thermoplastics such as synthetic resins for polyolefin systems are direct products of the petrochemical industry. The material of the plastic flexible packaging is basically a substrate processed by using petroleum as a by-product. Such as: BOPP, CPP, CPE, IPE, LDPE, PET, PP, NY, toluene, ink, glue and other materials are closely related to oil.

Among the value proportion of plastic flexible packaging products, material cost accounts for 80% of its total cost, accounting for about 60% of sales, so the product cost of plastic flexible packaging is positively correlated with oil price. As the price of oil rises, it directly leads to an increase in the cost of plastics. The continued rise in oil prices has caused some plastics companies to face losses. Another example is the rise in prices of plastic raw materials such as ABS due to rising international crude oil prices. With the loss of price advantage and the shrinking of profits, enterprises are often caught in the vortex of low-cost and inferior competition.

In order to solve this difficulty, companies in the plastics industry should look to recycled plastics. Plastic raw materials mainly come from non-renewable fossil fuels such as coal, oil and natural gas. While oil is a non-renewable resource, it can be said that the production of recycled plastic is equivalent to saving oil. This will improve the vicious competition between enterprises and make the plastics industry develop a good environment.