Dongguan Zhangmudu Plastic Market "Traffic Jam and Supply Shortage"? Local Industry Association Responds: Supply Chain Disruption Does Not Exist

People’s Financial News, March 13 — Recently, due to disturbances in the Middle East situation and rising international oil prices, plastic futures have become more volatile. At the same time, there was a temporary congestion of trucks around the Dongguan Zhangmutou plastic market, sparking market speculation about “tight supply” and “disrupted delivery.” On-the-spot investigations found that there was indeed some congestion around the Zhangmutou market, but the situation was not as the outside world claimed, with “supply interruption.” Xu Yina, Secretary-General of the Dongguan Plastic Industry Development Promotion Association, said in an interview that in early March, severe traffic jams occurred at the Zhangmutou market, mainly due to sudden changes in market expectations that triggered concentrated pickups. This was compounded by continuous rainy days, which temporarily increased the turnover pressure on local warehousing and logistics areas. She stated that since March 5, local logistics have fully returned to normal. Regarding concerns about supply issues, Xu Yina further clarified that the supply sources of plastic raw materials in Dongguan and the Pearl River Delta are quite diverse, mainly from domestic sources, Southeast Asia, and the Middle East non-Iran regions, with Iran accounting for a relatively small proportion. Therefore, the current situation has not caused a substantial disruption to local plastic raw material supplies, with only a few specific grades experiencing minor disturbances, and the overall supply foundation remains stable. (First Financial)