Plastic Bags' Raw Material: Oil Amid Turmoil

The Raw Material of Plastic Bags – Oil: Price Transmission and Real-World Challenges Amid Global Turmoil

Plastic bags are everywhere in our daily lives and have become an indispensable part of our existence. Lightweight, waterproof, convenient, durable, and cheap – these are their undeniable advantages. Besides these, everyone also thinks of the environmental issues associated with plastic bags. However, plastic bags remain the most practical tool for everyday scenarios.

When it comes to the material and raw materials of plastic bags, most people think of PE, PP, etc., rather than linking plastic bags to oil, let alone associating them with war. Yet the fact is: the raw material for plastic bags is precisely oil.

We live in a peaceful country, but the U.S.-Iran war affects the entire world. This blog mainly analyzes the chain reaction caused by war, as well as our responses and attitudes.

Why the U.S.-Iran War Affects Oil Prices

At the end of February 2026, the United States and Israel launched military strikes against Iran. In retaliation, Iran announced the blockade of the Strait of Hormuz. The Strait of Hormuz is the only maritime passage connecting the Persian Gulf to the Gulf of Oman (Indian Ocean). It is known as the world's oil valve and the global energy lifeline, and it is the most important strategic chokepoint in the world today. It carries approximately 25%-30% of global seaborne crude oil trade, averaging about 20 million barrels per day (one oil tanker every 5 minutes). More than 20% of global oil consumption passes through this strait, and over 90% of Gulf producers' exports depend on it.

After the war broke out, shipping there came to a virtual standstill. Fatih Birol, Executive Director of the International Energy Agency (IEA), warned that the impact of this crisis on the energy industry is equivalent to the sum of the two oil crises of the 1970s and the natural gas crisis triggered by the Russia-Ukraine conflict in 2022.

The consequence was runaway oil prices. The average price of Brent crude soared to nearly $100 per barrel in March, closing the month at $118.4 per barrel, compared to less than $70 before the war. The American Automobile Association reported that the average U.S. gasoline price rose 35% in one month, breaking the $4-per-gallon mark for the first time in nearly four years.

The Core Raw Material of Plastic Bags Comes from Oil

     1.Obtaining Raw Material (Ethylene): First, oil (or natural gas) undergoes processes such as high-temperature cracking in an oil refinery to break it down into smaller molecules, yielding the key chemical raw material – ethylene gas.

     2.Polymerization (Synthesizing Polyethylene): Next, in a huge reactor, ethylene gas undergoes a polymerization reaction in the presence of specific catalysts (e.g., Ziegler-Natta catalysts) and additives. Countless small ethylene molecules (CH2=CH2) link together like holding hands to form long chains, creating polyethylene. Depending on the reaction pressure, temperature, and catalyst, different types of polyethylene with varying properties are produced:

• High-Density Polyethylene (HDPE): Densely packed molecular structure, hard and rigid. Mostly used for making shopping bags, garbage bags, and plastic bottles.

• Low-Density Polyethylene (LDPE): Highly branched molecular chains, soft and transparent. Commonly used for producing cling film, food packaging bags, etc.

• Linear Low-Density Polyethylene (LLDPE): Properties between HDPE and LDPE, with good toughness. Often blended with other materials to enhance the tensile strength and puncture resistance of plastic bags.

 

Conclusion

War does not detour just because we make plastic bags. Oil is not just fuel; it is the lifeblood of modern industry. The price of oil does not stop fluctuating because of the size of our orders. The plastics industry is on the front line. But there is one thing we can control: how we treat our customers. As a trustworthy supplier, we always adhere to the principles of honesty, flexibility, professionalism, and long-term commitment in serving our clients.