How the Middle East Conflict Is Driving Up Plastic Resin Prices in 2026
- abel zhao
- 5 days ago
- 3 min read
Introduction
In 2026, the global plastics industry is facing new uncertainty. Geopolitical conflict is escalating. Iran, Israel, and the United States are involved.
This conflict is starting to disrupt one of the world's most critical supply chains
— the petrochemical industry
For manufacturers that rely on plastic materials like polypropylene (PP) and polyethylene terephthalate (PET), the results are already becoming visible. Raw material prices are rising. Plastic Resin Prices are rising. Supply routes are not stable. Logistics costs are growing.
For industries like disposable tableware manufacturing, these changes could reshape cost structures in the coming months.
Why the Middle East Conflict Impacts Plastic Resin Prices
Most plastic materials come from petroleum-based feedstuffs. Global oil supply chains are disrupted. The whole petrochemical ecosystem feels the impact.
The Strait of Hormuz is one of the most critical routes in global energy trade. It is a narrow shipping corridor. It connects the Persian Gulf with global markets.
Recent military tensions in the region have threatened shipments passing through the strait. The strait normally handles a huge part of global oil and chemical exports.
According to reports, around 20 million barrels of oil per day normally pass through the Strait of Hormuz, making it one of the most important energy chokepoints in the world. Disruptions there could trigger major supply shocks.
Because petrochemicals depend heavily on oil and natural gas, supply disruptions quickly translate into higher prices for plastic feedstocks.
Polypropylene (PP) Prices Are Already Rising
Polypropylene is one of the most widely used plastics in disposable products such as:
plastic cups
plastic lids
takeaway containers
food packaging
However, the conflict has already begun affecting supply.
Industry analysts report that several producers have paused PP export offers while others introduced war-risk premiums on shipments through the Middle East.
Shipping costs are also rising as insurers and freight operators price in additional geopolitical risk.
At the same time, uncertainty around feedstock supply such as naphtha and LPG is forcing some petrochemical producers to reconsider production plans.
These combined factors are putting upward pressure on PP prices globally.
PET Resin Prices Are Also Sensitive to Oil Markets
PET resin, another major plastic material used in packaging and food containers, is equally sensitive to petrochemical market volatility.
PET is produced from key oil-derived chemicals such as:
paraxylene (PX)
ethylene glycol (EG)
When oil prices rise or refinery output declines, these feedstocks become more expensive.
Recent market data suggests PET resin prices in early 2026 are generally trending between $1,100 and $1,250 per metric ton, depending on region and contract terms.
In Southeast Asia, PET prices can reach around $1,200 per ton, while North American markets may exceed $1,300 per ton.
These fluctuations directly affect manufacturers across industries.
Why Disposable Tableware Manufacturers Are Particularly Affected
Disposable tableware producers rely heavily on plastic resin as their primary production input.
In many plastic product categories:
Raw materials account for 60–70% of total manufacturing costs.
When resin prices increase, manufacturers must either:
absorb the cost increase
reduce margins
raise product prices
For buyers such as foodservice chains, distributors, and supermarkets, this may soon translate into higher purchasing costs.
A Potential Turning Point for the Industry
Geopolitical tensions are changing the global petrochemical supply chain. So many businesses are starting to rethink their material strategies.
In the past, plastic was the cheapest choice for disposable products. But resin prices can go up fast and in ways that are hard to predict. Then other materials may start to look more attractive.
This shift is already starting discussions about fiber-based and agricultural-based materials. Sugarcane bagasse is one example.
Conclusion
The conflict in the Middle East is still happening. This is creating effects across global supply chains. The plastics industry is one of the first to feel the pressure.
Shipping routes are disrupted. Energy prices are going up. The supply of petrochemical feedstock is uncertain. So the prices of materials like PP and PET will likely keep changing.
For manufacturers and buyers in the disposable tableware industry, watching these trends will be important. It will help them manage costs and plan where to source materials in the future.
Email: abel@mana-eco.com
WhatsApp: +86 13867471335
We specialize in a full range of disposable tableware. With fully automated production lines and certifications like FDA, BPI, and OK Compost, we offer high-quality, eco-friendly tableware made from biodegradable materials such as sugarcane bagasse and PLA, committed to providing customers with more sustainable and environmentally friendly options.