Summary: In March 2026, the global energy market experienced unprecedented volatility. From domestic gasoline prices breaking the 9 RMB/liter mark to the collective surge in coal, LNG, and basic chemical raw materials, a "cost storm" triggered by geopolitical tensions is rapidly propagating along the value chain. Wuxi High Mountain provides a deep dive into the logic behind these across-the-board price hikes.

1. Energy Hub Surge: Oil, Coal, and Gas Triple Impact

On March 23, the domestic energy market hit multiple stage-highs, signaling that production-side cost pressures have reached a critical threshold.

• Refined Oil: Gasoline prices (95 Octane) have surpassed 9.12 RMB/liter, an increase of over 1 RMB per liter, directly inflating global logistics and travel costs.

• Coal Market: Thermal coal prices witnessed a single-session jump of 206 RMB/ton. High-grade thermal coal surged past the 900 RMB/ton mark with a 100% auction success rate, reflecting "panic buying" in the market.

• Natural Gas (LNG): Over 91 LNG plants and receiving stations nationwide raised prices by 50–300 RMB/ton, with northern and western regions entering a high-price zone.

2. Chemical Supply Chain: From "Shortages" to "Price Hikes"

The deterioration of Middle Eastern tensions and disruptions in the Strait of Hormuz have severely impacted the global chemical supply system.

• Critical Shortages: Liquidity for core raw materials such as Benzene, Ethylene, Propylene, TDI, and MDI has plummeted. Major manufacturers have largely suspended quotes and are holding back stock, leading to extreme market scarcity.

• Fuel Cost Peaks: The Global 380 High Sulfur Fuel Oil (HSFO) index surged by nearly $160 in a single week. Low Sulfur Marine Gas Oil (MGO LS) briefly broke $1,300/ton, the absolute highest value since data tracking began in 2001.

• Dye Industry Explosion: Giants like Jiangsu Yabang have issued multiple price adjustments. Notably, "Reductive Materials"—a core intermediate—soared from 25,000 RMB to 100,000 RMB in just two months, a 300% increase.

3. Transmission Logic: From PPI to Consumer Costs

Recent data indicates that every 10% rise in international oil prices directly pushes up the domestic PPI by 0.4 percentage points. This pressure is now leaking into all sectors:

• Logistics & Travel: Fuel accounts for 35%–40% of road transport costs. Major express delivery firms have increased rates by 15%–24%, while international airlines have doubled fuel surcharges.

• Textiles & Consumables: As oil is the base for synthetic fibers and rubber, costs for garments, packaging, and daily necessities like detergents and diapers are rising.

• Construction & Housing: Prices for copper, aluminum, and plastic building materials are climbing. Cement prices have seen three consecutive rounds of increases, raising the total cost of home renovations and infrastructure.

• Food Chain: Rising costs in agriculture and cold-chain logistics have pushed palm oil and coffee beans to multi-year highs, leading to "stealth inflation" through smaller packaging or direct price hikes in snacks and beverages.

4. HM Perspective: Building "Certainty" Amidst Uncertainty

At Wuxi High Mountain, we believe the current oil price spike is not just a travel issue but a total migration of global living and production costs. Chemical trade and manufacturing enterprises are facing a severe test.

Strategic Recommendations:

1. Anticipate Supply Risks: In a "no-quote" market, it is vital to lock in core suppliers early and utilize diversified sources to avoid single-point disruptions.

2. Precise Cost Management: With high energy costs, logistics efficiency is key to maintaining profit. Optimizing transport routes is currently the best way to survive.

3. Focus on Green Transitions: Extreme energy costs may accelerate the industry's shift toward low-carbon, high-efficiency processes—an opportunity for enterprises to lead the next market cycle.