Although Japan has a small land area, its economic status in the world is no exception. It is recognized as the world’s second largest economy after the United States (although China’s GDP has just overtaken Japan). The impact of the 9.0-magnitude earthquake on Japan is all-round, not to mention the direct loss of life and property, and the fear of panic caused by nuclear leakage alone, and the resulting negative chain-locking effect is difficult to estimate. The impact of natural disaster emergencies on the economy not only caused the supply and demand side of some commodities to cause crippled injuries, but the price fluctuations were also significantly affected by psychological effects. The author of the status of Japan’s auto industry does not need to go into details here. Honshu Island, which is most affected by the earthquake, is also populated by factories of many auto giants. The prices of rubber and modified plastics for cars have fallen sharply. From the perspective of supply, the start of ethylene and propylene in Japan did not suffer a full blow. A small part of the petrochemical plant was discontinued due to the power supply. The equipment itself was not seriously affected. This meant that once the situation was stable, it could be turned on at any time. On the whole, Japan’s plastic supply will decrease in the short term, but for China, the proportion of Japan’s major plastics imports accounts for less than 10%, and the current domestic inventory is larger overall. The impact will not be too obvious. Crude oil, as the upstream raw material of plastics, is the backbone of the plastic price fluctuations. The short-term impact of the earthquake on crude oil prices was more direct. As a result of the earthquake and tsunami, two refineries in Japan had a fire and several factories were closed due to an electronic shortage. The recovery of crude oil production capacity at the lower reaches is longer and the demand is suppressed for a longer period of time. The sharp drop in crude oil on March 15 severely weighed on the confidence of the plastics market and even created some panic. Taken together, the strong earthquake in Japan has a stronger impact on the plastics market, and the downward trend is also difficult to change in the short term. The author believes that the recent decline in the price of plastics is caused by the earthquake in Japan, and there are also reasons for the domestic plastic market itself. In recent years, large-scale plastics such as polyethylene and polypropylene have been rapidly expanding, and the capacity growth has exceeded the average level of plastics in the world. In addition, the import volume has been steadily increasing in recent years, and the situation of oversupply has always existed. As a commodity that is easy to store and has high value-preserving properties, plastics have seen a surge of enthusiasm from merchants in recent years. Their prices fluctuate frequently due to their financial attributes. The plastics market is also characterized by a cyclical ups and downs, and the downturn caused by unexpected events is bound to brewing in the later period. Japan has strong technical advantages and its industrial base strength is still very strong. After all, the impact of natural disasters on the market is difficult to last for a long time. As the panic dissipates, plastic prices will inevitably return, and later reconstruction is bound to drive demand recovery.
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