The recent missile strikes on the Jubail petrochemical complex in Saudi Arabia have exacerbated an already precarious supply situation for resin, a key material in printed circuit boards (PCBs) used in various electronic devices.
Following the strikes, the complex, which previously supplied about 70% of the world's high-purity polyphenylene ether resin, remains offline, contributing to a significant supply shortage. Dow CEO Jim Fittering indicated that the reopening of the Strait of Hormuz, crucial for logistics, could take over 275 days, which may lead to prolonged resin shortages.
This situation has already resulted in PCB prices rising by up to 40% from March to April, as noted by Goldman Sachs. Experts predict that consumers will soon feel the impact through higher prices and longer wait times for electronics, although companies like Apple may manage to mitigate some effects due to their purchasing power and supply chain strategies.
However, lower-margin devices are likely to experience more immediate price pressures. The lack of alternative resin suppliers means that manufacturers cannot easily substitute materials, which could lead to the highest price increases in a decade for electronic devices by fall.
The Plastics Industry Association has highlighted the need for more resilient supply chains in light of these disruptions, emphasizing the importance of domestic production capabilities