SINGAPORE: Disruptions in Middle East oil flows are causing supply uncertainty for naphtha, a critical feedstock for plastics used in medical supplies and everyday items. Naphtha, derived from crude oil, is essential for manufacturing products like syringes, catheters, and packaging.
The ongoing conflict in Iran has disrupted shipments through the Strait of Hormuz, a major global oil trade route. This has raised concerns about rising costs for manufacturers, who are facing higher energy, logistics, and raw material expenses.
Local medical equipment suppliers report that prices are already increasing, with some expecting up to a 50% rise. However, Singapore authorities state there is no immediate shortage of medical supplies.
Manufacturers are adapting by diversifying supply sources, building inventory, and exploring renewable energy solutions. Experts warn that prolonged supply issues could lead to broader cost increases across industries.
