Is there a "traffic jam and supply disruption" at Dongguan Zhangmutou Plastic Market? The local industry association responds: There is no supply chain interruption.

Recently, affected by disruptions in the Middle East situation and the rise in international oil prices, plastic futures have seen increased volatility. Meanwhile, around the Zhangmutou plastics market in Dongguan, there was a period when trucks could be seen lined up with long queues, prompting market speculation about “tight sources of supply” and “a supply interruption.” A field visit by First Financial journalists found that there was indeed stage-by-stage congestion around the Zhangmutou market, but the situation was not the “supply interruption” that the outside world had been claiming. Xu Yina, Secretary-General of the Dongguan Plastic Industry Development Promotion Association, said in an interview with First Financial that in early March there was severe traffic congestion at the Zhangmutou market. The direct cause was a sudden shift in market expectations, which triggered concentrated pickup, further compounded by continuous rainy days—temporarily magnifying the circulation pressure on the local warehousing and logistics area. She said that since March 5, local logistics has fully resumed smooth operations. Regarding the supply issue that drew outside attention, Xu Yina further clarified that the supply sources of plastic raw materials in Dongguan and the Pearl River Delta are themselves quite diversified, mainly coming from inside China, Southeast Asia, and the Middle East and non-Iranian regions in which Iran is excluded. In fact, Iran-sourced goods account for a relatively low proportion, so the current situation has not caused any substantial interruption to the local supply of plastic raw materials. Only a small number of specific grades have experienced slight disruptions, and the overall supply foundation remains solid. (First Financial)