A single move in the oil market can set the entire film industry in motion! Unveiling why rising oil prices drive up the cost of film raw materials.

Preface 

As a core material in fields such as packaging, electronics, and new energy, thin films are deeply linked to the petroleum industry in terms of their production raw materials. Petroleum, after Atmospheric and vacuum distillation The core process involves separating different fractions based on their boiling points, and the fundamental raw materials for thin-film production are derived from these key fractions. As professionals in the membrane industry, we are often asked: Why, whenever international oil prices rise, PE 、 PP Will the prices of core raw materials for thin-film applications rise in response? This article starts by examining the actual temperatures and product distributions in petroleum distillation, as well as the composition of crude oil, to dissect the link between refining and petrochemical processes and thin-film feedstocks. It then provides a detailed explanation of the underlying mechanisms through which rising oil prices are transmitted to the membrane market, all from a perspective that is both industry-specific and easy to understand. 

I. Oil is a treasure from head to toe: industrial fractionation towers separate components by temperature, and each product has its own unique applications. 

Petroleum is a complex liquid mixture of hydrocarbons, which in industry is obtained by Atmospheric pressure + Vacuum distillation column Combined process, according to From low to high temperature Physical separation yields different fractions, each of which is further processed into fuels, chemical feedstocks, and other products. The following pertains to the petroleum industry. Core Temperature Ranges in Atmospheric and Vacuum Distillation and Corresponding Products (Industry-wide general standard, including the degree of linkage with the thin-film industry): 

(1) Atmospheric Distillation Column ( 0.1MPa , separation of light and medium fractions) 

1. < 40°C : Petroleum gas (refinery gas) 

  The light fractions in the lowest temperature range, composed of methane, ethane, and other hydrocarbons, serve as both a domestic fuel and a core feedstock for chemical cracking. They can be directly converted into ethylene and propylene, providing the fundamental monomers for the synthesis of film-grade resins. 

2. 40 ~ 200°C : Gasoline fractions (including naphtha) 

  The core source of thin-film materials ，60 -1 30°C Light naphtha, 130- 200°C Heavy naphtha is used in steam cracking to produce ethylene and propylene. Optimal raw materials ( accounting for global ethylene feedstock 70% (As mentioned above), it serves as the core link between the petroleum and thin-film industries; the light fractions can be blended into gasoline, providing energy for transportation and production in the thin-film industry. 

3. 200 ~ 300°C : Kerosene fraction 

  After refining, it serves as a core feedstock for aviation kerosene and can also be used as an industrial solvent and a cracking auxiliary feedstock to support chemical production. 

4. 300 ~ 350°C : Diesel fraction 

  Middle-quality distillates are the core fuel for diesel engines and are widely used in the road transportation of film raw materials and finished products, as well as in industrial construction machinery. 

5. greater than 350°C : Atmospheric Residue 

  The bottom product from the atmospheric distillation column, which is prone to coking and decomposition at high temperatures, must be sent to a vacuum distillation column for further processing; it serves as the feedstock for marine heavy fuel oil and asphalt. 

(2) Vacuum Distillation Column ( 0.01~0.05 MPa , separation of heavy fractions) 

1. 350 ~ 500°C (Decompression boiling point): Vacuum wax oil 

  Deeply processed products derived from atmospheric residue can be used as feedstock for catalytic cracking or blended into the base components of marine fuel oil. 

2. greater than 500°C (Decompression boiling point): Vacuum residue 

  The final residue from atmospheric and vacuum distillation can be further processed to yield Marine heavy fuel oil (Large vessels, boiler fuel), Asphalt (Road and building waterproofing); the residue can be coked to produce olefins, thereby indirectly supporting the synthesis of film-forming raw materials. 

In short, the core source of thin-film raw materials is the atmospheric distillation column. 40 ~ 200°C gasoline fraction (naphtha) , this fraction is for the thin-film industry. “ Raw Material Foundation ”。

II. Composition of Petroleum and Its Fractional Distillation and Deep Processing: Raw Materials for Membrane Materials “ Source Code ”

(1) The Core Chemical Composition of Petroleum (Industry-Wide Standard Indicator) 

Petroleum 95% The above is Hydrocarbons , carbon accounts for 83%-87% , hydrogen accounts for 11%-14% , these two constitute PE 、 PP of the core raw materials for thin films The only basic element . The proportion of alkanes and cycloalkanes in petroleum 80% The above, among which Alkane It can be cracked to produce ethylene and propylene, making it a core raw material for membrane production. 

(2) From Petroleum Fractionation Fractions to Thin-Film Raw Materials: Two-Step Deep Processing “ Transformation ”

Naphtha from petroleum distillation must be subjected to Secondary chemical deep processing (industrial standard process) can then be transformed into PE 、 PP Core raw materials for thin films, with no process deviations throughout the entire process: 

1. Step 1: Steam cracking, converting naphtha into monomers. 

  Naphtha (and petroleum gas) is subjected to 750~850℃ Steam cracking , breaking the hydrocarbon molecular chain to form Ethylene, propylene , among which ethylene is PE The sole raw material, propylene is PP The sole ingredient. 

2. Step 2: Polymerization reaction—chemical monomers are converted into thin-film raw materials. 

  Ethylene addition polymerization yields Polyethylene ( PE ) （ Low-density polyethylene 、 LLDPE etc.), is a core raw material for packaging films, agricultural films, and other applications (accounting for the proportion of thin-film raw material usage 60% above); propylene undergoes addition polymerization to form Polypropylene ( PP ) , is BOPP Main raw materials such as films and electronic insulating films (accounting for the consumption of thin-film raw materials 20% The above). 

Currently in the market 80% The above-mentioned film The core ingredient is PE 、 PP , all of which originate from naphtha obtained through petroleum fractionation, typically via atmospheric and vacuum distillation. + Deep chemical processing is the standard production pathway for membrane material raw materials. 

III. Why Does Rising Oil Prices Affect Film Raw Materials? A Rigid Cost Transmission Chain 

The price of thin-film raw materials is highly correlated with oil prices; the core issue is PE 、 PP Production is highly dependent on naphtha derived from petroleum distillation and its deep-processing derivatives; rising oil prices, due to rigid transmission throughout the industrial chain, drive up the cost of film-grade raw materials. , with a seamless transmission chain and high speed, supported by industry-verified empirical data, it is specifically divided into three steps: 

(1) Step One: Oil Prices Rise → Costs Soar Across the Entire Oil Fractionation Value Chain 

Petroleum is the sole feedstock for fractional distillation and deep processing; rising oil prices directly increase crude-oil procurement costs, placing price-increase pressure on the entire refining and petrochemical value chain. Notably, naphtha prices are highly correlated with crude-oil prices, reaching 90% The above, Industry-Verified : Every time oil prices rise 10 U.S. dollar / Barrel, naphtha price increase 8%~12% , directly driving up upstream costs for film raw materials. 

(2) Step Two: Naphtha Price Increase → Core monomer prices for thin-film materials have risen. 

Naphtha accounts for of the production costs of ethylene and propylene. 70%-80% , its price increase will inevitably lead to a simultaneous rise in ethylene and propylene prices, both of which are linked to crude oil prices. 1:1 Positive correlation. Industry empirical measurement: for every increase in oil prices 10 U.S. dollar / Barrels: Production costs for ethylene and propylene have risen, respectively. 350-400 Yuan / tons, 380-420 Yuan / Tons—this is the core factor driving the price increase of film raw materials. 

(3) Step 3: Price Increases for Chemical Monomers → Thin-film raw materials PE/PP Price increase in response 

PE 、 PP In production costs, ethylene and propylene account for 80%~85% , a price increase for individual components will be passed on directly and in full to the finished product, Industry-Verified ：

• PE : Every time oil prices rise 10 U.S. dollar / Barrels, spot prices rise on average 300~500 Yuan / tons, impacting the raw material costs of packaging films, agricultural films, and other products; 
• PP : Every time oil prices rise 10 U.S. dollar / Barrel, production costs have risen by nearly 400 Yuan / tons, BOPP Raw materials for high-end membrane products, such as membranes and electronic films, have risen in price in tandem. 

When geopolitical conflicts and logistical bottlenecks are叠加, the transmission chain will accelerate further. Industry Practice : From a sharp spike in oil prices to a rise in the cost of film raw materials, the shortest time required is 10 Heaven, the increase will be further amplified. 10%~20% 。

IV. Additional Impacts of Rising Oil Prices on the Membrane Market: Pressure Across the Entire Industry Chain, Not Just Raw Material Costs 

In addition to directly increasing raw-material costs, rising oil prices also indirectly drive up the overall cost structure of the film industry through fractionation products, placing film manufacturers under multiple pressures—conditions that are widespread across the sector: 

1. Both logistics and production energy costs have risen. 

  Gasoline, diesel, and marine heavy fuel oil are the core power sources for the film industry and transportation fuels; rising oil prices are driving up road costs. / Ocean freight rates (increase 10%~20% ) and factory fuel and power costs. 

2. Raw material supply is tight, driving up procurement costs. 

  Petrochemical companies have halted orders and curtailed output, while traders are hoarding supplies and reluctant to sell, resulting in PE/PP Supply is tight, with film manufacturers procuring spot inventory at premium prices—costs are higher than market rates. 5%~10% 。

3. Simultaneous Price Increases for Thin-Film Auxiliary Materials 

  Plasticizers, adhesives, color masterbatches, and other auxiliary raw materials are all derived from petroleum refining; rising oil prices are driving up their costs. 8%~15% , further increasing cost pressures on membrane companies. 

4. Financial Strains on Small and Medium-Sized Membrane Enterprises Intensify 

  Collective price hikes in raw materials, logistics, and auxiliary materials are consuming substantial working capital; small and medium-sized film companies have limited bargaining power, making it difficult to pass on cost pressures to downstream customers, which easily leads them into “ Production equals loss. ” Predicament. 

Conclusion 

Petroleum as “ Industrial Blood ” Its fractional distillation fractions underpin the entire industrial system, with the film industry relying on naphtha fractions to establish a complete feedstock supply chain through steam cracking and polymerization reactions. The rise in oil prices drives up the prices of film-grade raw materials; at its core, this is Petroleum - Naphtha - Ethylene / Propylene -PE/PP The rigid cost pass-through is determined by the raw-material nature of the thin-film industry. 

Understanding the actual processes of petroleum fractionation and the logic behind oil-price transmission can help membrane companies accurately forecast market trends and effectively manage procurement and cost control. At present, petroleum remains an indispensable core feedstock for the membrane industry; in the future, as bio-based and biodegradable new materials gain traction, the industry’s reliance on petroleum may gradually decline. Nevertheless, closely monitoring oil-price dynamics and gaining deep insights into feedstock supply chains remain critical to the stable development of membrane firms. 

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