The ongoing US-Iran war has caused a ripple effect in the global plastics and glass market, disrupting supply chains worldwide.
Disruptions in oil supply and key components used in manufacturing have affected the availability of plastic and glass products.
Notably, plastic items are partially made from oil, whose price has climbed by over 40% since the war began in late February.
Glass container makers rely heavily on commercial gas supplies to keep their furnaces running.
The rise in material prices is being driven by higher oil and natural gas prices, partly due to Iran's threats to shipping in the Strait of Hormuz.
As a result, higher energy costs are increasing both production expenses and the price of raw materials, including polyethylene and polypropylene.
West Asia remains a key supplier of plastic raw materials, contributing nearly 25% of global exports of polyethylene and polypropylene.
The lack of substitutes for plastics is another issue, as plastics are used widely across industries such as packaging, construction, automobiles, and healthcare.
The glass industry has also been hit hard by the West Asia crisis due to its heavy energy requirements, with India's factories among the most exposed in Asia.
Disruptions are cascading into critical supply chain bottlenecks, causing factory shutdowns, lower output, and fewer global orders.
