Blocking of the Strait of Hormuz causes a plastics shortage in Asia

Asia is facing a shortage of plastic packaging, notably used in the agri‑food and pharmaceutical sectors. Reduced oil deliveries have led to lower production of naphtha, a petroleum derivative used in plastic manufacturing. Naphtha prices in Asia have more than doubled since the start of the war. In Indonesia, plastic packaging distributors are stopping deliveries to their clients. Indonesia imports almost all of its naphtha from the Gulf. Ethylene production, another major packaging component, is declining in Japan.