Iran War Drives Up Plastic Prices as Asia Shifts to Paper
The war in Iran has severely disrupted supplies of oil and petrochemicals, pushing plastic prices to around four-year highs. In Asia, one of the world’s largest consumers of plastics, this is triggering a chain reaction.
Companies are increasingly switching to alternative materials, particularly paper packaging.
South Korea’s Yonwoo, for example, has reported a sharp rise in interest in packaging with a lower plastic content.
Japanese manufacturers are announcing price increases of up to 30% for plastic products, while traders warn of potential packaging shortages. Some companies are already cutting production or shifting to alternatives, although for others the transition remains technologically challenging.
Asia has long been one of the largest producers of plastic waste, so the current situation may paradoxically accelerate changes environmental organizations have sought for years. The question remains whether the trend will persist after the conflict or whether the market will return to cheaper plastics.