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Strait of Hormuz Disruptions Hand U.S. Plastics Makers a Price and Profit Surge

Middle Eastern supply cuts shift orders to ethane‑fed U.S. plants.

An employee at Emerald Packaging operates a machine that produces grocery bags at the company’s facility in Union City, California, U.S., April 6, 2026. REUTERS/Carlos Barria
An employee at Emerald Packaging wraps a roll of plastic produced for grocery bags at the company’s facility in Union City, California, U.S., April 6, 2026. REUTERS/Carlos Barria
Workers watch melted aluminium flow through a die, to make bars inside an aluminium extrusion factory in Dahegam, India, March 19, 2026. REUTERS/Amit Dave
An employee at Emerald Packaging operates a machine that prints grocery bags at the company’s facility in Union City, California, U.S., April 6, 2026. REUTERS/Carlos Barria

Overview

  • The Iran war has choked traffic through the Strait of Hormuz, curbing petrochemical shipments from the Middle East and tightening global supply.
  • U.S. producers that use ethane, a natural gas component, have ramped output because their feedstock does not rely on Gulf shipping lanes.
  • Dow told buyers it raised North American polyethylene prices by 30 cents per pound for April after a 10‑cent March increase, and it said plants are running near full capacity.
  • LyondellBasell said polypropylene from the Middle East is stuck in the region, opening a window for North American exports of the resin used in food containers and car parts.
  • Manufacturers that buy plastic resin report higher costs that could reach shoppers, and analysts say it may take eight to nine months for Gulf shipping and plants to recover even after a truce.