Supply of naphtha, or not - March 27, 2026

[sharon sanders]

Seoul bans naphtha exports as supply concerns spur trash bag hoarding

Industry estimates suggest South Korea's existing naphtha inventories would last for only about two weeks


South Korea banned naphtha exports from Friday after tightening supply forced the shutdown of one of the country's largest naphtha cracking centers and even prompted hoarding of trash bags as the war in the Middle East drags on.


more.......https://www.kedglobal.com/petrochemi...ed202603260006

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While the number of oil tankers arriving in Japan after passing through the Strait of Hormuz has fallen drastically, the chemical sector is also facing difficulties in procuring naphtha, a liquid derived from crude oil that is used to produce ethylene, a raw material for plastics and synthetic fibers.

more... https://english.kyodonews.net/articles/-/73011

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India....



Medicine prices to rise due to raw material shortage amid West Asia war, warn Himachal pharma manufacturers


In the last fortnight, the price of paracetamol alone has increased to Rs 450 per kg from Rs 250, as many manufacturers have no option but to buy material at increased rates.

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As there is an unprecedented 200-300% price hike in active pharmaceutical ingredients (APIs), solvents, excipients and packaging materials, production contracts have become unviable.

more...https://www.newindianexpress.com/nat...-manufacturers

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United States.....


Healthcare Spending Drives Plastics Demand


According to Plastics Industry Association Chief Economist Perc Pineda, PhD, US medical equipment production has experienced fluctuations since the COVID-19 pandemic, impacting plastics demand. Healthcare spending remains robust, with $2.9 trillion spent in 2025.



March 27, 2026



Import competition and inventory corrections are reshaping the industry, while future interest rate cuts may support domestic production.

The US medical equipment and supplies industry, a critical driver of plastics demand, has experienced significant production fluctuations in recent years, shaped by the COVID-19 pandemic, post-pandemic inventory corrections, and shifting global trade dynamics. While healthcare spending remains robust — reaching $2.9 trillion in 2025 — domestic production has faced challenges, including import competition and economic pressures on hospitals.

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Production of medical equipment and supplies, as measured by the Industrial Production Index (IPI), surged during the pandemic, peaking at 31.5% above 2017 levels in July 2021. However, as demand normalized and inventories corrected, production began to decline, falling 15.7% from its October 2023 peak by February 2026. This volatility underscores the challenges and opportunities for the plastics sector, which remains integral to the manufacturing of syringes, catheters, surgical instruments, and other essential medical products.

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Healthcare spending in the US has remained consistently high, accounting for 16% to 17% of inflation-adjusted personal consumption expenditures (PCE) since 2007. In 2025, healthcare expenditures reached $2.9 trillion, representing 18% of PCE. This steady demand underscores the importance of plastics in the healthcare sector. “Spending on pharmaceuticals and other medical products, which use plastics and packaging, has remained steady at 3% to 4% of real PCE since 2007, valued at $663.2 billion in 2026,” Pineda noted. Plastics play a critical role in medical products, including syringes, catheters, surgical instruments, and packaging materials.

Post-pandemic inventory corrections


The IPI for medical equipment and supplies, tracked by the Federal Reserve, covers products in NAICS 3391, which includes establishments manufacturing medical equipment for healthcare providers. “Plastics are widely used in this industry, including in diagnostic apparatus, laboratory equipment, syringes, catheters and related disposables, as well as in surgical and medical instruments, surgical appliances, dental equipment, ophthalmic goods, orthopedic devices, prosthetics, and artificial body parts,” Pineda explained.

more... https://www.plasticstoday.com/medica...lastics-demand

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from Japan.....


The blockade of the Strait of Hormuz has brought naphtha shortages to the forefront; procurement is expected by before Golden Week; concerns about the production and supply of chemicals will inevitably have an impact; and disseminating information is proving difficult.


Shunsuke Kojima : Toyo Keizai Reporter

2026/03/31 5:00

The blockade of the Strait of Hormuz due to the Middle East crisis has disrupted the procurement of naphtha (crude gasoline), a raw material for petrochemical products. As of late March, supplies are expected to be available until around Golden Week (early May), but beyond that, it is up to each company to make their own procurement efforts.
While a certain level of explanation is essential, excessive fear-mongering could lead to confusion, so both the government and businesses are being extremely careful about how they communicate information.

Over 80% of naphtha is dependent on the Middle East; supply shortages expected in two months.

By separating naphtha, which is produced by refining crude oil, under high temperature and pressure, basic petrochemical products such as ethylene and propylene can be obtained. The equipment that produces basic petrochemical products from naphtha is called an "ethylene plant" or "naphtha cracker," and is considered an iconic facility of the petrochemical complexes along the Gulf Coast.
Derivatives such as polyethylene are produced from petrochemical basic products, and ultimately they are transformed into a wide variety of products including plastics, resins, and rubber. They are widely used in automotive parts and home appliances, as well as in everyday items such as food packaging films and plastic bags, and in the medical field, including for dialysis.

more..... https://toyokeizai.net/articles/-/939543