Asia Bulletins

War rooms and Safe havens April 21, 2026 Supply strains emerge: daily war rooms and tough trade-offs   What’s new: Asia CEOs are seeing the impact of the war in Iran on their supply chains, with tighter feedstock supplies, rising logistics costs, and longer lead times. The effects remain uneven across sectors and geographies, but early stress points are forcing uncomfortable decisions. Leaders are moving from strategic planning to triage, from price risk to availability risk. There’s a war room every day with my leadership team to make decisions on everything from rerouting supplies to raising prices with customers. Never a dull moment.’ (science-based service provider) Supply chain resiliency is the key question in this very uncertain world. This is my biggest concern right now, which is keeping me up at night. (global manufacturer with assembly in the US) Here’s what Asia CEOs and managers are saying. Feedstock gaps are emerging, sometimes in unexpected places. Customers are cutting operations because they are running out of feedstock. Packaging suppliers sent us force majeure letters because the petroleum-derived raw materials, or resin feedstocks, are not reaching the region. We have a vast supply chain network with redundancy capability, but packaging is not viable if it must be air freighted. Air cargo prices are through the roof. In a few weeks, we could run out of some plastic jug SKUs. We are having to increase prices. Inflation hit us hard on transportation costs, and now it’s impacting raw materials. We are in crisis mode. Scarcity is forcing tough trade-offs on the factory floor and with customers. In chemicals and plastics, the past month has been chaotic. Energy prices matter, but the bigger issue is feedstocks. Crude and gas are refined into inputs for chemicals and plastics. Across the region, supply is disrupted. Key inputs like naphtha and LPG are in short supply. Producers in Korea, Japan, and Taiwan are scrambling — deciding how hard to run plants, how long inventory will last, and prioritising customers who can pay higher prices. Planning has become extremely difficult. Running plants too low is inefficient and costly; running them too high, burns through feedstock too fast. Both carry risks, including equipment damage. So, it’s constant trade-offs, every day. Energy exposure varies significantly by country and needs to be assessed… We are going country by country to understand how much energy is coming from the Middle East or elsewhere. Our team has been doing a deep dive to educate ourselves. Our Vietnam country head said energy costs rose by 50% in February due to energy shortages. Hydro and coal are the main energy sources; gas accounts for only 10%. While Malaysia is more stable. High fuel costs limit the mobility of employees and goods. So many Asian countries are energy dependent and people can’t afford the high prices. This makes it hard for employees in outsourced business functions, such as HR or finance, to get to work when fuel costs are so high. In Sri Lanka, companies are letting employees work from home or arranging busing to get them to the office. We are absorbing material costs for now, but logistics costs have gone through the roof. At the end of the day, we must deliver the P&L. We are discussing price increases with customers. Air freight has become an expensive stopgap for some. I advise a British company with a large factory in Dubai that supplies India and parts of the Middle East. We are using air freight from the UK to keep supplying our Indian customers while Middle East sales are down by 50%. But thankfully, customers in the Gulf are still discussing future orders, so there is still a pipeline. China’s energy mix offers a temporary buffer. We have huge supply chain issues in India. Our powder-coat facilities require large amounts of gas to bake the paint. We are considering temporarily switching production back to China to avoid disrupting the customer experience, but this will have significant import tax implications. We are eating all the costs for now, but I don’t know how long we can do that for. Coal-based chemical production has kept running in China…despite the push towards renewables. Energy is where China stands out. There was a lot of talk about China moving away from coal toward solar, wind, and hydrogen. But in the chemical industry, China maintained coal-based production. Coal prices have barely moved, and coal-to-chemicals is running very well. China’s oil demand was expected to decline as EVs and renewables grew, yet it continued to stockpile oil. Looking back, their strategy is vindicated. What’s next: keeping an eye on other vital maritime chokepoints. Members raised concerns about the Taiwan Strait, the Panama Canal, and the Suez Canal. Panama has taken steps affecting CK Hutchison’s port concessions, further straining relations with China. While in Egypt, China has invested substantially in the Suez Canal. Ships are avoiding the Suez Canal because of higher insurance premiums and other risks. They are going around the southern tip of Africa, causing delays of 10 to 18 days for shipments to Southeast Asia coming from Europe and the US East Coast. We are also aware of the strategic presence of Chinese investment in that part of the world and in the Panama Canal, which creates some uncertainty. Bottom line: The Strait of Hormuz disruption is still working its way through the system, and the impact is uneven. But as buffers erode, more sectors are likely to face the same trade-offs caused by price volatility and availability risk. Silver Linings and Safe Havens   What’s new: Cancelled flights to the Middle East (and more recently China), along with rising fuel costs, are disrupting long-haul travel and compressing airline margins.   On the ground, however, more than one Asia CEO shared their experiences of packed regional hubs. There are media reports that taxis stopped running to the Bangkok airport because of fuel prices but that seems overstated. I was just in Bangkok, the airport was jam-packed, same as

Beyond oil: the blocked Gulf inputs that hurt Asia the most April 14, 2026 Since the Strait of Hormuz closed, oil and LNG prices have dominated the headlines. But as the war continues, the story that will define the next six to twelve months is the rising prices of everything else stuck in the Gulf. The Asia Bulletin reflects insights from IMA’s peer forums for CEOs and senior leaders. It highlights anonymised perspectives that surface the issues executives are grappling with firsthand. Reach out to us if you’re interested in the full report. It turns out that the Strait is a critical chokepoint for far more than oil.   For example, the Gulf is a major supplier of fertiliser inputs (e.g., urea) and helium to Asia. As these become scarcer, the prices of food and semiconductor chips will skyrocket. In late March, IMA Asia invited Nenad Pacek, founder of the EMEA Business Group and a 35-year veteran of Middle East business intelligence, to share his expertise with our members. The second-order supply shocks building behind the scenes were discussed. Even if the Strait were to reopen in the coming days or weeks, stockpiles of critical inputs are rapidly depleting, and damaged production sites across the Gulf will take time to repair. The impact across Asia will vary by industry and degree of dependence, but long-tail inflationary effects are to be expected. There appears to be no quick fix. Even in the base case of the war ending in the next month or so, Pacek advised: The clearance of the logjam and backlogs will take a while… our shipping clients believe this could linger into late Q2 or later. Below is a sample of the shortages to watch out for, along with a checklist to help Asia CEOs take action. The chips and electronics industries face helium and bromine shortages Helium is a big ingredient for the semiconductor industry. About 30% of the global supply comes from the region, mainly Qatar. Now it’s completely disrupted as well. Helium: Operations at QatarEnergy’s Ras Laffan Industrial City, the world’s largest LNG export facility, which produces helium as a byproduct, were halted after it was struck by an Iranian drone early in the war. Iranian missiles subsequently crippled the plant further. Spot helium prices have since doubled. For Asia’s chipmakers, the exposure is acute as stockpiles deplete. South Korea and Taiwan source more than 60% of their helium from Qatar, leaving them highly exposed. Japan has a more diversified supply base, sourcing only 30% of its helium from the Gulf. Bromine: used in precision chip etching and as a flame retardant in circuit boards, is also putting Korea’s electronics industry at risk. It is a quiet chokepoint that gets little media coverage but has a high concentration risk. Around two-thirds of the world’s bromine production comes from Israel and Jordan (from the Dead Sea), but Korea relies on Israel for most of its supply. The food and ag industries face fertiliser shortages (lacking inputs like urea, sulphur, etc.) as the planting season looms About 35% of the world’s fertiliser imports come from the Gulf. And about a third of the world’s urea passes through the Strait of Hormuz. The price of fertiliser has skyrocketed as shortages mount. The timing could not be worse for countries like India, with planting season on the way. India has an 800,000-ton deficit in its monthly urea production of 2.6 million tons due to limiting industrial gas supply to the 70–75% range. Furthermore, disruptions to ammonia imports have brought local production to a standstill, as the country sources 80% of its ammonia needs from the Gulf region. India is turning to Chinafor assistance. Australiaexpects current stocks to run out by mid-April, as it sources over 60% of its urea from the Middle East. A domino effect… Strait closure leads to shortages of urea and sulphur, which in turn cause shortages of nitrogen and phosphate fertilisers. Down the road, this could lead to lower crop yields, food price inflation, and potentially political instability. …on time delay. Experts expect inflation to spike mid- to late Q2 if the war extends. Food inflation will lag behind fertiliser price rises by three to six months, meaning H2 2026 is the key window to watch for food price cascades in Asia. Manufacturers face shortages in petrochemicals and aluminium A lot of the world’s supply chains — whether it’s the car industry, heavy industry, or plastics — depend on critical petrochemical components from the Gulf. And a lot of that is just simply not leaving. Petrochemical shortages are the hardest to quantify but could potentially result in the broadest shock. The Gulf’s SABIC, BOROUGE, QAPCO, and affiliates produce ethylene, propylene, polyethylene, methanol, and hundreds of downstream derivatives used globally in electronics, packaging, automotive, and pharma applications. For aluminium, it goes beyond logistics headaches. Iran has targeted the region’s major aluminium plants with missiles and drones. Kuwait, Qatar, and Bahrain are all stuck. All the aluminium exports from Bahrain are stuck, which has a global impact on top of everything else. The Middle East supplies 9% of the world’s aluminium, and Bahrain accounts for 3%. Aluminium prices hit a four-year high in March, with some suggesting they could reach $4,000 per ton if the industry faces severe disruption. One caveat: Chinese-invested aluminium plants in Indonesia are expected to ramp up production this year. A global logistics logjam — ships and containers stuck in the Gulf Ships and containers unable to offload their cargo remain in the Gulf, tying up shipping capacity needed elsewhere and driving prices higher. Hundreds of thousands of containers —up to 2 million TEU of cargo once downstream disruption is considered — are caught in the Gulf. That’s a global shipping disruption because those containers cannot be in Asian ports, the Port of Los Angeles or Rotterdam. So it’s already significantly increasing global shipping costs. The routing problem is not easily fixed – there are few port alternatives to the Strait in