Brace for the Plastic Price Hikes

"The plastics that proliferate through modern life are almost all made from oil and gas derivatives or by-products. Until the conflict began, many of the chemical ingredients that go into plastics... originated in the Middle East."

"So far, Asia, whose plastic makers depend heavily on oil and chemicals traveling through the strait, has borne the brunt of the disruption. In China, Taiwan, Thailand, Indonesia, and other industrial powerhouses, many petrochemical producers have declared force majeure."

"Some have scaled back production as they've run short of crucial ingredients such as naphtha, a crude-oil derivative. South Koreans began panic buying trash bags in March... and officials in Taiwan asked plastic suppliers to prioritize medical uses."

"Given Asia's role as a manufacturer of goods exported around the world, its troubles may soon ricochet more widely. Malaysia, for example, makes nearly half of the world's synthetic rubber."

The Iran war has significantly impacted fuel prices and is causing disruptions in plastic production due to shortages of key ingredients. Many chemical components for plastics originated in the Middle East, and the closure of the Strait of Hormuz has led to supply chain issues. Asian countries, heavily reliant on these materials, are experiencing production cuts and price increases. This disruption may have broader implications for global markets, as Asia is a major exporter of goods that rely on plastic components.

Read at The Atlantic