Impact of US-Iran war: Home and hospital goods will become expensive due to rise in plastic prices

War Impact On Plastic Prices: The growing war tension between America, Israel and Iran in the Middle East has now started affecting the global economy as well as the kitchens and hospitals of the common man. After the oil and gas crisis, now due to disruption in the supply chain, a huge jump has been recorded in the prices of polymers. Manufacturing costs of everyday products have increased in India due to the impact of the war on plastic prices. There may be a big increase in the prices of products made of plastic in the coming times.

cost overruns

Indian Oil Corporation (IOCL) has recently announced a huge increase in the prices of plastic raw materials on March 25. Under this increase, the prices of Homopolymer Polypropylene i.e. PPH have been increased by about Rs 4,000 per tonne. Along with this, the prices of copolymer and polyethylene have also been increased by about Rs 7,000 per tonne.

PVC prices

The prices of PVC, another important type of plastic, have also seen a record increase during this month. According to the report, the price of PVC has increased by about Rs 13,000 per tonne in the month of March. This change in prices happened on March 1, 3 and 11 due to shortage of raw materials and logistics problems.

effect on kitchen

Due to this huge jump in the prices of polymers, there is every possibility of increase in the prices of packaged foods and bottled water. PPH and PE are widely used in making containers, buckets, bottles and everyday use items. Experts say that if costs increase, companies will either increase prices or reduce the size of their packaging.

health sector

The most serious impact of inflation is going to be on the health sector and medical device industry which will directly affect the patients. Polymers are used extensively for outer packaging of syringes, IV bottles, diagnostic kits and life-saving medicines. Due to increase in input costs, medical services and equipment available in hospitals may now be much more expensive than before.

supply chain

According to experts, the cost of plastic has increased by 50 to 60 percent due to the closure of the Strait of Hormuz. Along with this, the cost of electricity and packaging used in the manufacturing process has also increased by more than 20 percent. All these factors have reduced the profits of companies making syringes and gloves, due to which changes in prices are certain.

lack of gloves

The war has led to shortages of critical raw materials such as nitrile butadiene rubber latex, making production challenging. Especially due to the increase in the manufacturing cost of nitrile gloves, there is a severe shortage of them in hospitals. Official revision in prices of all these medical products may be seen in the month of April.

Also read: First attack on US base in Saudi, then Iran targeted American military ship near Oman; Stress may increase

future crisis

Overall, the huge increase in the input cost of plastic in recent weeks has started a new phase of inflation. Companies are now preparing to pass the increased burden directly on consumers to balance their manufacturing costs. In the coming days, the general public may have to spend a large part of their savings on plastic-based products.