Middle East Conflict Drives Raw Material Price Surge — We Maintain Stable Pricing for Customers

Recently, the U.S.–Israel–Iran conflict (Middle East war) has significantly impacted the global energy and raw material markets. The conflict has disrupted the Strait of Hormuz, pushing international crude oil prices from around $80 per barrel in February to over $105 per barrel, an increase of more than 30%. Oil and natural gas are key sources for plastic raw materials and energy, directly driving up prices for polyethylene (PE) and polypropylene (PP), with some materials experiencing price increases of 60–70% (Reuters).

Impact on the Wood-Plastic Industry

1. Rising Raw Material Costs
   Plastic resins account for approximately 40–50% of WPC product costs. The surge in raw material prices directly increases production costs—for example, PE prices have risen from $1,100/ton to around $1,800/ton.

2. Higher Transportation and Logistics Costs
   Crude oil price increases have driven global shipping costs up by approximately 15–25%, and insurance fees have also risen, placing additional pressure on export-dependent wood-plastic manufacturers.

3. Pressure on Market Pricing
   Many companies in the industry have been forced to consider raising product prices to maintain profit margins, though contractual obligations and market competition limit their flexibility.

Our Commitment — Stable Pricing

Despite rising costs, Winyoungtech (Anhui Winyoung New Material Technology Co., Ltd.) is committed to maintaining our current product prices. Customers can continue to purchase our WPC decking, wall panels, and fencing products at existing prices. We absorb increased costs through:

• Optimized production efficiency to reduce unit costs

• Diversified supply chain sourcing to mitigate raw material price volatility

• Technological innovation and energy-saving measures to maximize material utilization

Industry Outlook

As the conflict continues and global energy markets fluctuate, cost pressures remain uncertain. We will continue to maintain stable supply chains and optimize internal management to ensure customers receive high-quality products at stable prices, even in a turbulent market environment.