Iran War Triggers Plastic Shortage in Asia, Affecting Industries and Supply Chains

The Iran war has caused an oil shock that is leading to shortages of plastics in Asia, impacting various industries. Asia imports about 70% of its naphtha, a key petrochemical feedstock for polymers like polyethylene and polyethylene terephthalate, from the Middle East.

These materials are used in food packaging, cosmetic containers, plastic bags, and medical consumables, with prices increasing since the conflict began and supplies became restricted through the Strait of Hormuz. Chen Ping-Kuo, a professor in industrial engineering and management at Japan’s Ritsumeikan Asia Pacific University, stated that the stability of plastic as a basic industrial material has been affected.

He added that disruptions will spread through supply chains in Asian societies that rely heavily on plastics.

April 20, South Korea’s health regulators started a nationwide investigation into intermediaries and firms suspected of hoarding syringes, needles, and gloves, which are made from oil-derived chemicals. The healthcare sector faces shortages of polypropylene and PVC, limiting availability of syringes, IV bags, and sterile packaging.

Li Dong, a supply chain engineering expert from Singapore’s Nanyang Technological University, said this could become a public health risk in countries with strained healthcare systems, such as India, Indonesia, and the Philippines. He noted the most critical impacts may occur in the food industry, where plastics extend shelf life and reduce spoilage in places with weak cold-chain infrastructure.

Hospitals and clinics are ordering extra stock in anticipation of price increases, creating bottlenecks, according to Jung Chul-woo, a representative from the Korea Medical Devices Association. For example, Malaysian dairy brand Farm Fresh reported to the Straits Times that a shortage of PET resin, used in beverage bottles and food containers, has led to milk cartons being unavailable on supermarket shelves.