Southwest Asia accounted for over 40% of the world’s exports of petrochemicals used to make plastics, such as polyethylene in 2025, but about half of this capacity is either closed, constrained, or otherwise impacted from the Iran War. Prices for some of the most basic plastics such as polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC) have generally been falling over recent years, but have surged due to the war. Many industries report operating at 60% of capacity due to shortages.
Within days of the start of the war the market shifted from oversupply to one of panic-driven scarcity. Not only the petrochemical industry is reeling, but virtually every sector of the economy depends upon plastics for consumer packaging, construction materials, medical supplies, automotive components, etc.
One of the earliest and worst-hit sectors is agriculture and worst-hit regions is Southeast Asia. Sacks for shipping fertilizer inputs and shipping out rice and other crops are in short supply, and at exorbitant prices.
