Eka Global secures raw material stocks through May to stabilize prices amid global petrochemical crisis
Amid escalating tensions in the Middle East and rising petrochemical prices, Eka Global has announced a proactive raw-material inventory strategy designed to ensure packaging production continuity through May 2026, despite emerging domestic plastic pellet shortage.
Chaiwat Nantiruj, Eka Global’s Group CEO, said that signs of a plastic pellet shortage in the market are becoming increasingly evident, as key raw-material shipping routes from the Middle East have been disrupted by the ongoing conflict. As a result, some domestic plastic pellet producers have announced temporary production shutdowns and declared force majeure to suspend new orders, citing their inability to import upstream feedstocks such as naphtha and propane under normal conditions. Meanwhile, overseas manufacturers and suppliers have also begun slowing the acceptance of new orders.
According to the Federation of Thai Industries (FTI), these disruptions are disproportionately affecting SMEs in the plastics and packaging sector, which comprise over 98.8% of the industry. Costs are rising sharply. Prices of polypropylene (PP) plastic pellets and packaging films have begun to tighten in the market and trend upward. For example, prices of hot-food plastic bags and HD bags have increased by around 4 baht per kilogram, while other food packaging products are also rising in line with higher energy costs.
The additional costs resulting from partial shutdowns of domestic petrochemical plants are estimated at more than 150 million baht per month. At the same time, freight rates and cargo insurance premiums have surged by more than 50–140% following the disruption of key shipping routes.
Nevertheless, although signs of a plastic pellet shortage have become increasingly evident and some suppliers have begun rejecting new orders, Eka Global remains better positioned than many other manufacturers in the market. The company had previously implemented a systematic supply-risk management strategy, allowing it to be less affected than other producers. With its current raw-material reserves, Eka Global expects to have sufficient plastic pellets and sheet stock to support the production of its longevity packaging for customers worldwide through May 2026, while maintaining stable pricing to ensure customer confidence even amid the ongoing crisis.
Chaiwat said, “At present, nearly every country is being affected, as the Middle East is the world’s largest petrochemical production hub. Plastic pellet costs are expected to increase by at least 30%, which could push end-product packaging prices up by around 10–20%. However, Eka Global has already assessed the situation and secured sufficient raw-material inventory. By managing stock levels and supply risks across both of its manufacturing facilities in Thailand and India, we maintain adequate supply to meet our customer demand through May 2026. As a result, we remain in a strong and stable position to navigate the current market volatility.”
Eka Global continues to closely monitor the situation and is accelerating coordination with its global network of partners to optimize supply chain management. This approach aims to ensure that food industry operators continue to receive high-quality packaging with reliable supply, even amid one of the most challenging market conditions in recent years.
Chaiwat added that Eka Global remains confident its overall performance in 2026 will grow in line with its target of 10–15%, building on sales of one billion baht recorded in 2025. Growth will be driven primarily by the Indian market, which has been expanding at an average annual rate of 30–40%, as well as continued growth in the Thai market.
“The Indian market is expected to be relatively less affected by the current conflict and will likely continue expanding steadily. The domestic market is also showing a similar trend. This year, the company plans to invest more than 100 million baht to expand production capacity and establish an R&D center, reinforcing Eka Global’s position as a leader in packaging innovation. At the same time, the company is preparing to launch a new premium pet food packaging product, developed in collaboration with a customer, which is expected to be officially introduced in the second quarter of 2026,” said.
