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As a geosynthetic materials manufacturer, Sichuan Zhonglong Environmental Protection has been closely monitoring the shifts in global energy and supply chain landscapes. Since March of this year, the international market has been in constant turmoil. Geopolitical tensions have caused a sharp surge in global crude oil prices, triggering a chain reaction across every link in our industry. What's more troublesome is the strategic blockade near the Strait of Hormuz severely limiting our imports of essential raw materials such as polypropylene, polyester and polyethylene resins.
These dual pressures have inevitably driven up our overall production costs. Throughout the second quarter, the global market for geosynthetic materials has seen persistently high finished product prices, with geotextiles, geomembranes, geogrids and drainage composites all experiencing increases. For manufacturers and engineering contractors, securing stable supplies at predictable costs has become increasingly challenging to balance.
However, by the late June, we began to see a gradual but significant pullback in international exchange crude oil prices. Although the Strait of Hormuz remains constrained, freight costs are still exorbitantly high, and logistics delivery times remain uncertain—the downward trend in upstream energy costs is now evident. But it must be made clear that price softening at the refinery level will not immediately pass through to the finished resins and polymers we purchase. There is typically a lag of several weeks between crude oil price movements and end-use raw material quotations, as factors such as existing inventory contracts, ocean freight surcharges and exchange rate fluctuations act as buffers.
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Sichuan Zhonglong Environmental Protection Co., LTD
📞Tel/WA: +86 173 8021 9980
📬Email: sichuanzhonglong@163.com
🌐Website: https://www.zhonglonggeo.com
🎬Youtube: https://youtube.com/@zhonglonggeo