Jin Daily Tech Trivia: How the Naphtha Shortage Is Affecting Our Food
By Shee Tze Jin
Jin Daily Tech Trivia: How the Naphtha Shortage Is Affecting Our Food
Remember when Farm Fresh milk and other dairy products suddenly went out of stock on store shelves? We might soon see a similar shortage of instant noodles, as packaging materials are currently running very low.
Naphtha, a refined product of crude oil, is a key raw material used to produce plastic resins such as polyethylene, polypropylene, and PET. These materials are essential for manufacturing instant noodle packaging, snack wrappers, and plastic beverage bottles.
Food companies typically do not stockpile large amounts of packaging materials, which further increases the risk of supply chain disruptions.
Before the geopolitical conflict involving Iran, global naphtha prices were around USD 633 per ton. As the situation escalated, prices surged to USD 1,141 per ton.
In addition, crude oil shipments from the Middle East usually take over a month. This is followed by multiple processing stages, including refining into naphtha and converting it into packaging.
Industry have noted that even if crude oil shipments were dispatched immediately, the materials would not reach packaging production lines until after June.
