11 votes

Ramen, K-beauty, clothes face shortages as Iran war hits Asia’s supplies

9 comments

  1. [9]
    skybrian
    Link
    From the article: [...] [...] [...]

    From the article:

    At the root of the supply chain issues, along with soaring oil prices, is a shortage of key petrochemicals used in nearly every manufactured item. Companies aren’t sure how much longer they can absorb rising production costs. As the war grinds on, supply problems are expected to get worse, analysts say.

    Asia is more dependent on the Middle East for crude oil and liquefied natural gas imports than any other region. Countries including Japan, Thailand, South Korea and Sri Lanka have already moved to control oil prices to blunt the blow to consumers, or have asked employees to change work schedules to conserve fuel. So far, three South Korean airlines entered emergency management mode to deal with high jet fuel costs.

    In Malaysia, the rubber glove industry is facing higher costs due to a shortage in a petroleum-based material used to produce the personal protective equipment.

    [...]

    In Indonesia, bottled water producers are planning to cut spending to deal with the price increase in raw materials.

    And in Singapore and Taiwan, it’s becoming more expensive for companies to produce medical devices such as syringes and catheters, largely made of petroleum-related products.

    The supply chain disruptions have reached a scale that many manufacturers say is reminiscent of the coronavirus pandemic.

    Iran’s effective shutdown of the Strait of Hormuz, a choke point through which a large portion of the world’s oil passes, has rattled many Asian economies and driven up the cost of raw materials — especially naphtha, which is so critical that South Koreans call it the “rice of the petrochemical industry.”

    Derived from crude oil, it is vital in the production of chemicals such as ethylene and propylene, which are used to make everyday products including plastic bottles, food packaging, car parts, rubber and more. As much as 70 percent of Asia’s naphtha passed through the Strait of Hormuz last year.

    Compared with much of Asia, the United States is less exposed because it relies on ethane, a cheaper alternative to naphtha.

    [...]

    In South Korea, the government has rolled out 12-point energy austerity plan, which recommends taking shorter showers and charging phones and electric vehicles during the day.

    Shoppers are panic-buying government-regulated garbage bags out of fears that a naphtha shortage could make them and other plastic goods scarce. Some stores are limiting the number of bags sold to each customer to deter hoarding.

    “There is no need to worry about the supply of standard garbage bags,” South Korean Energy Minister Kim Sung-whan posted on X last week. “You will never be in a situation where you are forced to let garbage pile up at home.”

    South Korea imports 45 percent of its naphtha, with 77 percent of that share coming from the Middle East, according to industry figures. It imports about 70 percent of crude oil through the Strait of Hormuz, according to lawmakers.

    [...]

    Supply chain disruptions have hit the country’s plastics makers, including those making packaging materials for instant ramen noodles and plastic containers for “K-beauty” skin care products.

    5 votes
    1. [8]
      chocobean
      Link Parent
      I know it super sucks for the short term, and for medical plastics there are no alternatives. But surely we can accomodate k-beauty with good old glass jars and ramen with paper packaging. They...

      I know it super sucks for the short term, and for medical plastics there are no alternatives. But surely we can accomodate k-beauty with good old glass jars and ramen with paper packaging. They were going to hike prices on consumers anyway.

      reminiscent of the coronavirus pandemic

      One man pestilence

      7 votes
      1. [3]
        DefinitelyNotAFae
        Link Parent
        Changing product packaging takes time and money. And the supply chain collapsing fucks people over. And as someone whose partner uses catheters and whose partner and cat use syringes, yeah... This...

        Changing product packaging takes time and money. And the supply chain collapsing fucks people over.

        And as someone whose partner uses catheters and whose partner and cat use syringes, yeah... This is going to super suck for a lot of reasons for more than the short term. All while food is also more expensive.

        Guarantee someone will die due to getting an infection from reusing their catheters. (On top of you know, all the deaths from all the killing.)

        This is all bad.

        13 votes
        1. [2]
          chocobean
          Link Parent
          My hope is that most countries still have some stockpile of such vitals as PPEs and medical plastics, that will take some time to exhaust, enough time for critical materials to shift away from...

          My hope is that most countries still have some stockpile of such vitals as PPEs and medical plastics, that will take some time to exhaust, enough time for critical materials to shift away from who-cares stuff like ramen packaging. My hope is that after COVID, the supply / manufacturing has had the experience to make this switch in a timely and life saving manner. Still, it is, as always, the people who suffer whereas the leaders who make these decisions will be the most insulated from these impacts.

          I remember scrambling for masks during the early months of COVID, everywhere all sold out, and my dentist (that we have some personal connects to) was still able to order from 3M directly, and gave us boxes. Hopefully there are still methods. But yes, with so many people financially insecure, any disruption will push into them further into taking risks with their lives.... This is a triple whammy of food, fuel (for wages) and medical supplies.

          Please accept my apologies for sounding flippant about this in my previous comment. The whole situation super sucks, especially for poorer countries / populations within wealthy countries without community care cushioning the effects.

          3 votes
          1. DefinitelyNotAFae
            Link Parent
            Unfortunately a lot of folks end up having to buy supplies above what insurance provides and what centralized pharmacies ship, meaning off of Amazon or a medical warehouse. But yeah if there's a...

            Unfortunately a lot of folks end up having to buy supplies above what insurance provides and what centralized pharmacies ship, meaning off of Amazon or a medical warehouse. But yeah if there's a shortage and you can't get more until your check hits or your monthly insurance covered shipment arrives.... You start making things stretch.

            We've received so many extra incontinence supplies from the state, they're stockpiled in my shed. Because what if

            It's already saved my butt multiple times and we've been able to give them away to community members in need. I keep shelves of the things we use when we can get them, but some things I just can't get "ahead" on. Maybe other suppliers can ramp up.

            And I don't want to diminish the much worse direct impacts of war or even the more severe indirect impacts being felt by people in the article. This one small thing that impacts me and families like mine is still potentially deadly.

            6 votes
      2. [4]
        CptBluebear
        Link Parent
        Skincare products almost universally contain some form of petroleum based substance like paraffin or acrylates. Changing the packaging is unlikely to work for this product group. Alternatives do...

        Skincare products almost universally contain some form of petroleum based substance like paraffin or acrylates. Changing the packaging is unlikely to work for this product group.

        Alternatives do exist of course, plenty of people specifically avoid petroleum substances in their beauty products, but they probably also have the packaging problem that isn't easily resolved at scale.

        4 votes
        1. [3]
          chocobean
          Link Parent
          Cue extension of "petroleum free!" luxury line of products that cost less to make and costs more. I'm ready to pull Atlantic sea weed out of the beach this year to throw on my face.

          Cue extension of "petroleum free!" luxury line of products that cost less to make and costs more. I'm ready to pull Atlantic sea weed out of the beach this year to throw on my face.

          3 votes
          1. [2]
            TaylorSwiftsPickles
            Link Parent
            As a positive, you're gonna smell so delicious after this

            As a positive, you're gonna smell so delicious after this

            3 votes
            1. chocobean
              Link Parent
              coconut oil + seaweed. Now I just need to smell like rice and mangoes and I'm ready to eat my own arm

              coconut oil + seaweed. Now I just need to smell like rice and mangoes and I'm ready to eat my own arm

              3 votes