Reasons For The Recent Price Rises in Hardware And Plastic Products

The simultaneous sharp increase in prices of hardware and plastic products is the result of a combination of multiple factors, including global commodity costs, geopolitical conflicts, supply-demand imbalances, energy prices and relevant policies.

I. Core Reasons for Rising Hardware Prices

1. Tight Supply-Demand and Skyrocketing Prices of Key Industrial Metals

Aluminum: Aluminum ingot prices have risen by more than 20% since the start of 2026, with an expected global supply shortage of 230,000 tons. Concentrated demand from construction, photovoltaics and new energy vehicles, coupled with high US tariffs disrupting global supply, has driven up domestic prices in Asia.

Copper: Entering a "super cycle", electric vehicles consume four times as much copper as fuel vehicles, while demand for cables in AI data centers has surged. Copper prices once broke through $13,000 per ton.

Nickel/Stainless Steel: Sharp rises in nickel prices have driven up costs for stainless steel fasteners and hardware parts.

Tungsten: Tungsten carbide powder prices have increased nearly fivefold this year, directly pushing up prices of cutting tools and precision hardware.

2. Higher Energy and Smelting Costs

Metal smelting is an energy-intensive industry. Rising global energy prices have directly increased production costs, coupled with production restrictions for environmental protection and shrinking mine supply, further tightening supply.

3. Concentrated Release of Downstream Demand

The commencement of infrastructure projects, resumption of manufacturing, and expansion of new energy and photovoltaic capacity have created a "demand resonance", exacerbating supply shortages.

II. Core Reasons for Rising Plastic Product Prices

1. Soaring Crude Oil Prices as the Direct Trigger

Plastics are petroleum derivatives, with the industrial chain: Crude Oil → Naphtha → Olefins → Plastic Pellets. Geopolitical conflicts in the Middle East (shipping disruptions in the Strait of Hormuz) have driven up international oil prices, directly raising costs across the entire chain.

Estimation: Every $10 per barrel rise in crude oil increases plastic raw material costs by 300–500 yuan per ton.

Ethylene and propylene prices rose by more than 20% in a single day in March, up over 50% from late February.

2. Supply Contraction + Panic Buying

Shutdowns of overseas petrochemical plants, suspension of quotations by domestic refineries, and a sharp drop in imported goods have led to tight spot supply.

Panic restocking by downstream industries and reluctance to sell by traders have created a cycle of "buying more as prices rise", amplifying the price increase.

3. Collective Price Hikes by Chemical Giants

BASF, Wanhua, Kingfa Science and Technology and other enterprises have successively raised prices of plastics and additives by up to 20%, forming an industry-wide consensus on price increases.

III. Common Driving Factors

Geopolitical Shocks: Conflicts in the Middle East have disrupted both oil and metal supply chains, triggering global supply anxiety.

High Energy Prices: Rising electricity and natural gas prices have simultaneously increased costs for metal smelting and plastic processing.

Inflation and Capital Expectations: Global liquidity and inflation expectations have driven capital inflows into bulk commodities, further pushing up prices.

Peak Downstream Demand Season: The "golden March and silver April" construction peak has seen concentrated demand from manufacturing, decoration, packaging and other sectors, worsening supply-demand tensions.

IV. Impact and Transmission

Hardware: Costs of doors and windows, furniture, home appliances, auto parts and other products have risen, with general terminal price increases of 5%–20%.

Plastics: Price increases across all categories including packaging, daily necessities, home appliance casings and pipes, with some pipe prices rising by up to 25%.