Bangladesh Plastics Industry on Brink as Global Market Turmoil Bites
The plastics industry in Bangladesh is facing severe disruptions due to global energy and petrochemical market turmoil. The ongoing US-Israel war on Iran has put a strain on key shipping routes like the Strait of Hormuz, leading to a sharp increase in raw material costs. Resin, the main raw material for plastics, has surged from $900-$950 per tonne to $1,500-$1,600.
Manufacturers warn that production may soon grind to a halt as stocks last only weeks. Anisur Rahman, deputy executive director of Premiaflex Plastics Limited, said some factories will shut down within 10-16 days if supplies are not restored. The core issue is a supply shortage rather than high costs.
Industry insiders noted that manufacturers are diverting raw materials to produce specific products for customers willing to pay higher prices. However, difficulties in opening and adjusting letters of credit have further complicated the situation.