Rising Energy Prices Disrupt Thailand’s Plastic Supply Chain

Ongoing conflicts in the Middle East have driven up global energy prices, creating ripple effects across Thailand’s plastic industry supply chain, particularly affecting plastic resin, a key raw material used in packaging production.

Food manufacturers, including the producer of Thailand’s popular instant noodle brand “Mama,” have reported early signs of tighter supply for plastic film used in packaging. As a result, companies are adjusting production plans by prioritizing best-selling products while reducing the production of slower-moving items to conserve raw materials.

At the same time, plastic waste is also an important input for Refuse-Derived Fuel (RDF), a fuel produced from combustible waste and commonly used in cement plants and industrial energy systems. Plastics used for RDF typically include plastic films, plastic bags, and mixed plastic materials that are difficult to recycle.

With rising plastic prices, more plastic waste is being redirected toward recycling markets, reducing the availability of materials for RDF production. This has led to increasing competition for plastic waste among industry players.

The situation highlights how volatility in global energy markets is creating cascading impacts across multiple sectors in Thailand—from consumer goods packaging to waste-to-energy fuel markets in the industrial sector.

Cr. bangkokbiznews