War-driven supply shock is already roiling manufacturing in Asia
A supply shock triggered by the Iran war is roiling manufacturing in Asia. A shortage of naphtha, a key feedstock for petrochemicals, is disrupting production and the supply of consumer goods in Japan and South Korea, as regional industry grapples with pressure on energy and input costs.
A supply shock triggered by the Iran war is already hitting Asia's manufacturing hubs. According to the Straits Times, a squeeze in supplies of naphtha, a core feedstock for petrochemicals, is disrupting production lines and the supply of consumer goods in Japan and South Korea.
The naphtha shortage affects the cost and availability of a wide range of products, from plastics to textiles. The interruption to shipping through the Strait of Hormuz is deepening uncertainty over energy and input supplies.
Experts say pressure on supply chains could grow if the war drags on. This article is not investment advice; assessments are based on relevant industry sources and the Straits Times' reporting.
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