Crisis in energy corridor halts production in that sector

Due to supply issues in the Strait of Hormuz, a significant rise in oil prices has been observed in recent weeks. Disruptions in global energy flows have pushed up costs in many manufacturing sectors, particularly plastics. Plastic manufacturers, in particular, are experiencing major difficulties as both polymer prices have increased by 60-80 percent and logistics expenses have risen rapidly.

According to information received from industrial circles, while logistics costs have increased by approximately 70 percent, there is also a serious climb in insurance premiums due to increased risk. This situation is directly reflected in the final product costs in various sectors such as packaging and automotive, increasing inflationary pressure.

Many manufacturers are forced to temporarily suspend their production plans in the shadow of rising costs and uncertainty. Some factories have brought forward the holiday period, which is normally planned for later in the year. Moreover, a serious contraction in general capacity utilization is noticeable.

Plastics industry representatives state that sustainability is not possible under current conditions in fixed-price public tenders. The sector is requesting that the state declare "force majeure," temporarily lift additional taxes, and ease the burden on plastic raw materials.

Experts point out that Turkey is largely dependent on foreign sources for its plastic raw material needs. Stating that the bottleneck in the market is not only caused by logistics, experts also mention that cautious sales policies by companies in the supply chain are leading to a contraction in the market. It is emphasized that the implementation of temporary tax cuts on the import of strategic raw materials could relieve the market in the short term.

News Source: 12punto