Hope for quick plastic market normalization fades as Iran conflict escalates
Fighting in July squashed the promise of a June ceasefire and reopening of the Strait of Hormuz, along with packaging converters’ hopes for relief from plastic material price spikes.
In June, hope abounded that a preliminary U.S. ceasefire with Iran and the Strait of Hormuz reopening would renormalize plastics markets following war-related supply chain disruptions and price spikes. But in July, the conflict again escalated, causing disturbances and uncertainty, and pushed some converters further toward swapping out virgin materials for recycled resins.
Experts believe one thing is clear for both virgin and recycled markets: Impacts will now last into 2027 regardless of when the conflict potentially ends.
Hope for quick plastic market normalization fades as Iran conflict escalates | Packaging Dive