DUBAI: The global petrochemical industry is experiencing significant disruption as the conflict in the Middle East extends into its seventh week, leading to severe supply shortages for crucial feedstocks. Key market conditions have tightened, impacting regions such as Asia, with naphtha prices surging by 50% above pre-conflict levels to surpass US$902 per ton.

According to JS Global, PVC primary margins have remained stable due to a substantial rise in PVC prices, which have increased by approximately 47% since the conflict began, reaching US$1,090 per ton. Meanwhile, ethylene prices have also climbed, currently at US$1,445 per ton, counteracting any margin expansion.

Despite a current ceasefire, experts suggest that even if a lasting resolution is achieved, a rapid recovery of the industry is improbable. The technical intricacies involved in repairing and restarting petrochemical plants indicate that regional operations may take 8 to 12 months to normalize, maintaining constrained supply conditions in the near term.