Serbian plastic industry grapples with soaring costs, supply uncertainty amid Middle East tensions

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Serbian plastic industry grapples with soaring costs, supply uncertainty amid Middle East tensions

2026-04-07 13:36 Last Updated At：04-08 11:04

With the ongoing U.S.-Israeli war with Iran disrupting global petrochemical supply chains, Serbia's plastics industry, which is highly dependent on imported raw materials, has grappled with the dual pressure of soaring costs and supply uncertainty.

A Serbian manufacturer of pressed polyethylene and polypropylene polymer sheets said that prices of its key raw materials have surged by about 50 percent in the past two to three weeks.

Although the company maintains several months of inventory, it continues to face mounting cost pressures from rising prices of raw materials, natural gas, petroleum, and electricity. Meanwhile, logistics challenges have also emerged.

"Basically, the prices are now very high, doubled then they were like two months ago. And the second thing is supply chain. I mean the logistic and the transportation, especially these days, is too long. It's more than two months," said BWC Group CEO Slobodan Skundric.

Such impact triggered by the war has been felt across Serbia's entire chemical industry, forcing some companies to suspend acceptance of new orders to manage the market volatility.

"Prices of plastic raw materials, which are petroleum derivatives, have climbed to historically high levels, posing severe challenges to the industry's development. Serbia has a very developed plastics industry, with more than 2,600 companies engaged in plastic products manufacturing nationwide. The sector generates export revenues of 1.2 billion euros and holds strategic importance for the country. The price hikes are undoubtedly hard to the industry," said Dragan Stevanovic, secretary of the Association for Chemical, Rubber and Non-Metal Industry with the Chamber of Commerce and Industry of Serbia

In response, the Serbian government has taken actions to mitigate the effects on the economy and people.

"First, the government has prohibited the export of fuel, petroleum, and their derivatives. This ban was extended a few days ago. In addition, the government has lowered certain consumption taxes to alleviate the impact of the current situation on the economy and the public," said Stevanovic.

Explosions heard in south Iran, U.S. forces claim strikes

Several explosions were heard Monday night in Iran's southern port city of Bandar Abbas, Hormozgan province, the semi-official Fars news agency reported.

The cause of the blasts remains unknown, the report said, adding that similar sounds were heard concurrently in the Gulf near the counties of Sirik and Jask in the same province.

Also on Monday, a spokesman for the U.S. Central Command (CENTCOM) said that U.S. forces struck missile launch sites and mine-laying boats in southern Iran in the day.

U.S. forces conducted self-defense strikes in southern Iran to protect the troops from threats posed by Iranian forces, said Tim Hawkins, the CENTCOM Spokesman, in a statement.

"Targets included missile launch sites and Iranian boats attempting to emplace mines. U.S. Central Command continues to defend our forces while using restraint during the ongoing ceasefire," he said.