Why War Affects the Price of Packaging Bags
The core base materials for flexible laminated Plastic Packaging—such as polyethylene (PE), polypropylene (PP), and polyethylene terephthalate (PET)—are all derivatives of petroleum refining. Raw material costs account for 60% to 75% of total production costs; consequently, fluctuations in international crude oil prices directly determine the industry's cost baseline. As the central hub for global crude oil supply, the Middle East handles over 40% of the world's seaborne oil trade. The Strait of Hormuz, in particular, serves as the "vital artery" for global energy transport, with approximately 30% of the world's seaborne crude oil and 60% of Asia's imported naphtha passing through this critical waterway.
Following the outbreak of war, disruptions to crude oil supplies triggered severe volatility in international oil prices; in some regions, the situation became so extreme that supplies were nearly impossible to secure, and price quotes shifted as often as three times a day. For flexible Packaging Pouches utilizing aluminized films or aluminum foil laminates, the resulting cost pressures have been particularly acute. As the critical functional layer, aluminum foil sees its price influenced by the dual factors of energy costs and aluminum ingot prices; the surge in energy prices—directly attributable to the war—has driven up the costs of aluminum foil production and processing, thereby further intensifying the upward cost pressures facing aluminum-plastic composite film pouches.
The geopolitical crisis triggered by the war has not only disrupted raw material supplies but also thrown the global logistics system into disarray, creating a dual squeeze characterized by "rising raw material prices plus logistics premiums." The skyrocketing cost of ocean freight, in particular, has substantially inflated the logistics costs associated with both importing raw materials and exporting finished goods.
Faced with this crisis of soaring costs—a direct consequence of the war—ZL-Pack refused to merely absorb the impact passively. Instead, we took proactive measures across four key dimensions—procurement, production, product strategy, and partnerships—to construct an operational framework characterized by controllable costs, a stable supply chain, and competitive products, thereby achieving a successful breakthrough against the prevailing headwinds.
