Media: War in Iran sparks sharp rise in plastic prices

Disruptions in the supply of oil and petrochemical products through the Strait of Hormuz following the outbreak of war in Iran have led to a reduction in the global supply of chemical products and a surge in prices for plastics and polymers used in automotive manufacturing, packaging, and toys, Reuters reports.

According to Rabobank, petrochemical products worth $20–25 billion pass through the strait annually. In 2025, the Middle East accounted for over 40% of polyethylene exports. Due to the conflict, up to 50% of polyethylene supplies are restricted or halted, and polyethylene (PE) and polypropylene (PP) prices on the Dalian exchange have risen by 37–38% since the end of February.

The closure of the strait also threatens exports of oil and naphtha totalling nearly 1.2 million barrels per day, increasing raw material costs for the chemical industry. In Asia, refining margins have risen to over $400 per ton, compared with $108 before the conflict.

Plastic manufacturers in Europe and Asia are facing rising costs and compressed margins, while the U.S. enjoys an advantage due to the production of PE and PP from natural gas. American companies, such as Celanese and Dow, are already raising prices, while European firms—BASF, Wacker Chemie, and Lanxess—are also increasing product costs by 10–50%.

Experts note that rising raw material prices could intensify inflationary pressures and affect demand for non-food goods, while the plastics market may gradually consolidate around large producers with low production costs.