Ongoing tensions in the Middle East have resulted in sharp increases in feedstock costs and unprecedented volatility in polymer pricing worldwide.

As polymers are derived primarily from petroleum-based products such as natural gas and naphtha, any instability in these upstream markets has a direct and immediate effect on the plastics industry, says industry association Plastics SA executive director Anton Hanekom.

Reported increases between March and April range from 30% and continue to increase as time progresses and, when combined with substantial increases in freight costs, the total impact on landed prices in South Africa has been significantly higher.

Global supply constraints such as production slowdown in key regions such as Southeast Asia, where manufacturers rely heavily on Middle Eastern feedstocks, have intensified shortages.

Moreover, local production is constrained by ageing infrastructure and operational challenges.

“The pace and scale of these increases are unlike anything the industry has experienced in recent years. What we are seeing is not simply a pricing cycle, but a convergence of global risks that is placing sustained pressure across the entire plastics value chain,” Hanekom says.

Traders are exposed to fluctuating prices with limited guarantees from international suppliers, while converters are increasingly cautious in committing to forward orders. At the same time, increased buying activity, now often exceeding normal demand levels, is placing additional strain on already constrained supply.

Despite these challenges, Plastics SA believes there are opportunities for the local industry to respond proactively, given that South Africa’s well-established recycling sector provides an important alternative source of material, with available stocks of recycled polymers such as the high-density polyethylene, low-density polyethylene and polyethylene terephthalate offering potential to supplement supply and improve resilience.

“We encourage manufacturers to actively explore the use of recycled materials where feasible. Not only does this support supply continuity, but it also advances our broader sustainability objectives as an industry,” Hanekom adds.

Looking ahead, Plastics SA expects continued volatility in the short to medium term, with supply constraints likely to persist, and availability potentially tightening further in the coming months as global trade flows remain disrupted.