Asian petrochemical companies are increasingly adopting ethane as a substitute for naphtha to mitigate supply risks stemming from escalating tensions in the Middle East [1, 2].

This shift represents a strategic attempt to decouple industrial production from a region where political instability directly threatens the availability of raw materials. Because petrochemicals are foundational to everything from packaging to electronics, any disruption in the supply chain can trigger rapid price inflation across consumer markets.

In Thailand, the impact of these disruptions is already visible in local commerce. At a Bangkok fresh-produce market, a plastic product vendor said the price of a 500-gram bag was 33 baht, or approximately 160 yen [1]. The vendor said that prices have jumped 1.5 times due to the war [1]. A local restaurant owner said that many shops are struggling and said government support is necessary to survive [1].

The reliance on the region remains high. Thailand depends on Middle East crude oil for 60% of its total crude imports [1]. Japan's vulnerability is even more acute in the petrochemical sector, relying on the Middle East for 80% of its naphtha imports [5].

Amid these pressures, U.S. President Donald Trump said on Tuesday that negotiations regarding the region were proceeding smoothly and a result would be known within 48 hours [1]. However, this claim contradicts reports from the Iranian side, which said on Monday that it was not negotiating with the United States [1].

Industry leaders in Japan and South Korea are now prioritizing ethane, which can be sourced from more stable regions, to ensure that the production of plastics and chemicals remains uninterrupted regardless of the diplomatic outcome in the Middle East [2, 3].

“Price of a 500-gram plastic bag... jumped 1.5 times due to the war.”

The transition from naphtha to ethane is more than a technical change; it is a geopolitical hedge. By diversifying raw material sources, Asian economies are attempting to insulate their domestic manufacturing costs from the volatility of the Strait of Hormuz and Iranian diplomatic crises, which have historically caused sudden price spikes in essential consumer goods.