"They Asked for an Extra 400,000 to 800,000 Won"...Concerns Rise Over Waste Bag Supply Shortage
Impact of Middle East Crisis on Waste Bag Supply
"Raw Materials Only Last One Month"
Bag Manufacturers Voice Concerns Over Rising Production Costs
Ministry Launches Inventory Survey Among Local Governments
Naphtha Supply Disruptions Trigger Sharp Price Hikes... Supply Stability at Risk
Concerns are mounting that instability in the Middle East—triggered by clashes between the United States and Iran—could affect the supply of standard volume-based waste bags, which are essential daily necessities in Korea.
Resource recycling center in the Seoul metropolitan area. Photo by Yonhap News Agency
View original imageAccording to Yonhap News Agency and other sources on the 19th, the Ministry of Climate, Energy and Environment sent an official notice to local governments across the country on this day, initiating an assessment of the current stock levels of volume-based waste bags. This preemptive measure comes after bag manufacturers reported that their raw material inventory would only last about one month.
Although each local government currently maintains a certain amount of bag inventory, which means there is no immediate risk of running out next month, the ongoing uncertainty surrounding the duration of the Middle East crisis has prompted authorities to review the situation.
Volume-based waste bags are primarily made from polyethylene, which is produced using naphtha—a substance refined from crude oil. Recently, disruptions in crude oil and naphtha supplies, such as the closure of the Strait of Hormuz by Iran, have led to an overall increase in prices for related materials.
Industry surveys have also confirmed that polyethylene prices have surged recently. According to a survey by the Korea Federation of Plastic Industry Cooperatives, which polled plastic product manufacturers on the impact of Middle East instability on raw material supply, the price of polyethylene has risen by about 200,000 won this month.
An official from the federation told Yonhap News Agency by phone on the same day, "Some companies have been notified by suppliers that the price of low-density polyethylene will be raised by 400,000 won, and in some cases even 800,000 won starting next month," raising concerns that production costs could increase even further.
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Annually, approximately 1.8 billion volume-based waste bags are produced in Korea. As most of these bags—whether for general waste, food waste, or reusable bags sold at supermarkets—are made from polyethylene, there are growing concerns that fluctuations in raw material prices could directly affect both production costs and supply.
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