Rising Plastic Prices, APINDO South Kalimantan Highlights Middle East War Impact on Industry
Friday, 03 April 2026
BANJARMASIN – A recent surge in plastic prices has been attributed to sharp increases in global oil and natural gas prices, driven by disruptions in energy distribution routes following the Iran–United States conflict and its ally Israel. The spike has significantly increased production costs and placed additional pressure on industrial players.
Chairman of APINDO South Kalimantan, Winardi Sethiono, stated that the rise in plastic prices is closely linked to escalating global energy prices. He explained that disruptions in international energy supply chains have directly impacted the cost of producing plastic raw materials.
According to Winardi, the price hike is inseparable from ongoing geopolitical tensions affecting global energy flows. One of the key contributing factors is the disruption in the Strait of Hormuz, a critical route for global oil and liquefied natural gas distribution.
He noted that nearly one-fifth of the world’s oil and LNG supply depends on this strategic passage. When distribution is disrupted, energy prices inevitably surge.
“It is not surprising that crude oil prices jumped from USD 67 per barrel to USD 98 per barrel on March 20, 2026. Meanwhile, benchmark natural gas prices in Asia and Europe also rose by more than 60 percent during the same period,” he said on Friday (April 3, 2026).
Winardi emphasized that the plastic industry is highly dependent on fossil-based raw materials. Citing data from the Center for International Environmental Law, more than 99 percent of global plastic production is derived from oil and gas.
The situation underscores the vulnerability of industrial sectors to global geopolitical dynamics, particularly those heavily reliant on energy-intensive raw materials.
Source: banjarmasin.tribunnews.com
