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Iran conflict disrupts Asia's plastic supply chain

03:35

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Georg Matthes
May 6, 2026

Asia's plastic boom has long relied on cheap oil and petrochemical feedstock from the Middle East to make their products. But now that supply is under pressure and many are searching for alternatives.

The conflict in Iran and rising crude oil prices is becoming a headache for plastic producers in Southeast Asia as polyethylene is in short supply.

Factories in Indonesia are scaling down operations because of limited raw materials leading to production cuts, workforce reductions and higher costs passed on to consumers — affecting essential goods like food packaging.

At the same time, the crisis is accelerating demand for more sustainable packaging alternatives, including biodegradable materials made from cassava-based starch.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.

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