Asia faces a severe plastic crisis as naphtha shortages from Iran's oil disruption cripple manufacturing. The vital petroleum component, used to make plastics, has seen prices nearly double since the conflict began. Indonesian supplier Toko Durga Plastik reports daily sales plummeting to Rp3.5mn ($201), while major producers like Mitsubishi Chemical and Mitsui Chemicals have cut output across the region.

The ripple effects extend across Asian economies, where food and beverage sectors account for 60% of plastic packaging demand in Indonesia. Japan's ethylene production operates at a record low 68.6% capacity. South Korea faces shortages of medical supplies including syringes, with national stockpiles declining. Jakarta has scrapped import duties on plastic materials to ease inflationary pressures in a country struggling with declining consumer spending.

Asian manufacturers scramble for alternatives, with Indonesia seeking naphtha from India, Africa and the Americas, while Japan claims sufficient supplies until year-end. Despite government assurances, businesses brace for worsening conditions. A Japanese survey found 44% of food manufacturers already affected by plastic availability issues, with a major natto producer suspending certain products due to packaging constraints.