At the root of the supply chain issues, along with soaring oil prices, is a shortage of key petrochemicals used in nearly every manufactured item. Companies aren’t sure how much longer they can absorb rising production costs. As the war grinds on, supply problems are expected to get worse, analysts say.

Asia is more dependent on the Middle East for crude oil and liquefied natural gas imports than any other region. Countries including Japan, Thailand, South Korea and Sri Lanka have already moved to control oil prices to blunt the blow to consumers, or have asked employees to change work schedules to conserve fuel. So far, three South Korean airlines entered emergency management mode to deal with high jet fuel costs.

In Malaysia, the rubber glove industry is facing higher costs due to a shortage in a petroleum-based material used to produce the personal protective equipment.

[...]

In Indonesia, bottled water producers are planning to cut spending to deal with the price increase in raw materials.

And in Singapore and Taiwan, it’s becoming more expensive for companies to produce medical devices such as syringes and catheters, largely made of petroleum-related products.

The supply chain disruptions have reached a scale that many manufacturers say is reminiscent of the coronavirus pandemic.

Iran’s effective shutdown of the Strait of Hormuz, a choke point through which a large portion of the world’s oil passes, has rattled many Asian economies and driven up the cost of raw materials — especially naphtha, which is so critical that South Koreans call it the “rice of the petrochemical industry.”

Derived from crude oil, it is vital in the production of chemicals such as ethylene and propylene, which are used to make everyday products including plastic bottles, food packaging, car parts, rubber and more. As much as 70 percent of Asia’s naphtha passed through the Strait of Hormuz last year.

Compared with much of Asia, the United States is less exposed because it relies on ethane, a cheaper alternative to naphtha.

[...]

In South Korea, the government has rolled out 12-point energy austerity plan, which recommends taking shorter showers and charging phones and electric vehicles during the day.

Shoppers are panic-buying government-regulated garbage bags out of fears that a naphtha shortage could make them and other plastic goods scarce. Some stores are limiting the number of bags sold to each customer to deter hoarding.

“There is no need to worry about the supply of standard garbage bags,” South Korean Energy Minister Kim Sung-whan posted on X last week. “You will never be in a situation where you are forced to let garbage pile up at home.”

South Korea imports 45 percent of its naphtha, with 77 percent of that share coming from the Middle East, according to industry figures. It imports about 70 percent of crude oil through the Strait of Hormuz, according to lawmakers.

[...]

Supply chain disruptions have hit the country’s plastics makers, including those making packaging materials for instant ramen noodles and plastic containers for “K-beauty” skin care products.