Turkish plastics industry under pressure

The conflict in the Middle East is hitting Turkish industry with full force. The plastics industry has been hit particularly hard: interrupted supply chains and skyrocketing raw material prices have already led to production stoppages in several cities. Key raw materials such as polymers are only available to a limited extent, while prices have risen massively. Factories in industrial locations such as Istanbul, Gaziantep and Konya have had to temporarily cease production. The industry is therefore facing a double burden of shortages and cost increases. The effects extend far beyond the sector. Plastic is a key material for numerous industries - from packaging and textiles to automotive production. Accordingly, there is growing concern about broader economic consequences and additional inflationary pressure. Industry representatives are now calling for political countermeasures, including tax breaks for raw materials. This is also due to the strategic importance of the Strait of Hormuz, the disruption of which has a significant impact on the supply of energy and petrochemical precursors. In addition to raw material prices, logistics costs are also rising sharply - with direct consequences for end consumers. The first price jumps for packaging show how quickly the crisis is spreading along the value chain. The post Turkish plastics industry under pressure appeared first on ostwirtschaft.de.