Asia’s oil crisis is quickly worsening into a full-blown material shortage, as falling stockpiles of plastics threaten industries as far apart as food production and medical equipment.
The region imports around 70% of its supply of naphtha, a petrochemical feedstock used to produce polymers like polyethylene (PE) and polyethylene terephthalate (PET), from the Middle East. These polymers are critical inputs for everyday products like food packaging, cosmetic containers, plastic bags, and medical consumables, all of which have skyrocketed in price since the Iran war began and the materials needed to make plastics got locked behind the Strait of Hormuz.
