Petrochemicals quietly underpin much of modern life, forming the invisible backbone of products we use every day, from plastic packaging to electronics, medicines, and many cleaning agents and disinfectants.

Petrochemical prices remain extremely high as of April 2026, driven by supply chain constraints and shipping disruptions linked to the Iran conflict.

Prices for manufacturing cleanroom products are experiencing pressure due to these geopolitical tensions and high energy costs, particularly in Europe.

While demand for cleanroom consumables remains strong, manufacturers face unpredictable raw material costs.

Main impacts

  • Higher prices: for example, the cost of naphtha in Asia has gone up by almost 60%.
  • Supply shortages: Shipping delays and closures are affecting up to half of polyethylene supplies.
  • Ongoing issues: Experts predict prices will stay high for the rest of 2026, even if a ceasefire holds, because of long-term damage and shipping delays.

The manufacturing sector and particularly small and medium-sized enterprises (SMEs) are feeling the impact of continued rising petrochemical prices.

In summary

Petrochemicals underpin modern life

  • Derived from oil, gas, coal, and biomass
  • Used in ~95% of everyday products, from medicines to detergents (not to mention electronics, plastics, rubbers, resins, synthetic fibres, adhesives, dyes, and petroleum-derived paints and coatings).
  • Petrochemicals are also critical to renewables like wind turbines and solar panels.

Global conflict, local consequences

  • Disruptions to oil supply chains are driving up energy and fuel costs.
  • UK businesses are absorbing the knock-on effects

Costs are rising across the board

  • Transport and logistics have become more expensive
  • Raw material prices increasing
  • Energy bills continuing to climb

Margins are under pressure

  • SMEs can’t always pass costs onto customers
  • Competitiveness is at risk
  • Profit margins are tightening

Supply chains remain fragile

  • Delays, shortages, and higher sourcing costs
  • Greater reliance on alternative suppliers
  • Operational inefficiencies creeping in

How to respond

SMEs and the manufacturing sector are facing a challenging combination of rising costs, financial pressure, and supply chain disruption.

Even though geopolitical events are outside of the control of business, it is important for SMEs to adopt a strategic outlook to reduce their exposure.

Operational

  • Adapt and focus on operational agility
  • Consolidate shipments
  • Streamline stock and supply chain
  • Build flexibility into planning and logistics
  • Keep informed of evolving trends
  • Prepare for the way ahead

Financial

  • Open communication with customers
  • Transparent pricing adjustments
  • Increase energy efficiencies and cost reduction
  • Careful financial management

Advantages as an SME

  • Agility to develop new processes
  • Low bureaucracy
  • Pivot production quickly and decisively
  • Adaptability to customers’ needs
  • Enter niche or emerging markets easily
  • Quick response to real‑world problems