The Iran conflict-driven blockade of the Strait of Hormuz has disrupted naphtha imports across Asia, but China's diversified supply networks and alternative feedstocks have allowed it to maintain production. This development strengthens China's price advantage in petrochemicals, directly impacting the cost and availability of raw materials for medical aesthetics devices, injectables, and packaging. Overseas buyers and distributors should monitor how this shift may affect sourcing strategies and supply chain resilience.
Market signal
Japan, South Korea, and other Asian economies face severe naphtha shortages due to the Hormuz blockade, which has cut off about 20% of global crude oil exports. Over 80% of crude oil passing through the chokepoint was bound for Asian markets, according to the US Energy Information Administration. Japan has cut ethylene plant production, while some plants in South Korea and Vietnam have shut down.
China, the world's largest chemical producer, is less affected. Its crude oil sources are less concentrated in the Middle East and include Russia. Chinese companies also use feedstocks like ethane from natural gas and coal, allowing them to continue chemical supply even if Middle Eastern naphtha is cut off.
Price and competitive dynamics
Non-Middle Eastern naphtha prices, which doubled initially, remain about 30% higher. This gives Chinese chemicals a sustained price advantage, potentially allowing them to dominate the market if the crisis persists. "The competitiveness of Asia's petrochemical industry, including Japan, will further decline," said a senior executive at a major Japanese chemical company.
South Korea is promoting ethylene plant consolidation under government leadership. In Thailand, PTT and Siam Cement Group are exploring a merger of basic chemicals and commodity-grade plastic businesses. "Even before recent disruption, the sector had already been shifting toward leaner capacity, higher utilization rates, and greater emphasis on specialty and high-value products," said Toasaporn Boonyapipat, chairman of a Thai petrochemical industry association.
What buyers should watch
For medical aesthetics buyers, this petrochemical shift affects the cost and availability of key inputs: plastic packaging, device components, and synthetic materials for injectables. China's ability to maintain supply at lower costs may further entrench its role as the dominant supplier of aesthetic consumables and packaging. Importers should evaluate alternative sourcing from China versus higher-cost Asian or Middle Eastern suppliers.
Regulatory and channel signals
The Japanese government has launched POWERR Asia, a proposal to collaborate with Asian countries on resource supply chains. "In an era defined by geopolitical uncertainty, overcapacity, and the urgent call for climate action, collaboration is no longer a choice, it is essential," said Tsao Mihn, chairman of a Taiwan industry association. Koshiro Kudo, chairman of the Japan Petrochemical Industry Association, advocates for a framework where Asian economies complement each other, including risk diversification through exchanges with geographically close South Korea.
Sourcing context
Asia's petrochemical industry has long suffered from cheap Chinese imports. The current crisis is a "double blow" to an industry already struggling with declining profitability, according to Baek Jong-hoon of the Korea Chemical Industry Association. For aesthetic supply chain professionals, this means monitoring how Chinese OEMs and raw material suppliers leverage their cost advantage, potentially reshaping global pricing and availability of aesthetic products.
Source: Read the original report | Published: June 15, 2026