VCI: Hormuz bottleneck threatens flow of key chemicals

Germany’s chemical industry lobby group VCI has warned that the ongoing war in Iran is likely to trigger price increases and supply disruptions in global chemical markets, particularly due to emerging shortages of essential raw materials in Asia and the Middle East.

According to a report by France 24, the disruptions are closely linked to instability in maritime shipping routes, especially through the Strait of Hormuz — a critical artery for global trade that has been severely affected by the conflict.

VCI Managing Director Wolfgang Große Entrup stressed that the consequences will be unevenly distributed across the industry, with smaller firms facing the greatest risks.

“This situation will hit our small and medium-sized businesses particularly hard, as many of them will not be able to quickly redirect their raw material supplies,” he said.

By Tamilla Hasanova