Geopolitical Risks: Stretch Film Raw Materials Up

The total demand for PE stretch film in China is expected to exceed 4.85 million tons in 2026, with a compound annual growth rate of approximately 4.2%. The market size of the stretch film segment is approximately 31 billion yuan, with an annual growth rate of 8.5%. E-commerce logistics and automated packaging in manufacturing are the core driving forces.

In March 2026, escalating geopolitical tensions in the Middle East disrupted shipping through the Strait of Hormuz, triggering a sharp tightening in global crude oil supply expectations. As of March 20, the price of London Brent crude futures surged to $112.19 per barrel, representing an increase of over 50% since the start of the year and hitting a four-year high.Goldman Sachs raised its average Brent crude price forecast for March-April to $110 per barrel, an upward revision of $12 from its previous estimate. The International Energy Agency (IEA) warned that the damage to energy infrastructure in the Middle East is comparable to the oil crises of the 1970s, and if the Strait remains blocked for 10 weeks, oil prices could test historical highs.