Paint industry announces price hikes as Middle East conflict disrupts crude oil supply
The cost spike has been severe enough to force major companies to raise prices in succession, with some products seeing increases of 10% to 40% and, in some cases, even higher.
SOUTH KOREA – South Korea’s paint industry is implementing significant price increases due to supply disruptions in crude oil and petrochemical raw materials caused by the ongoing Middle East conflict.
The prolonged Middle East geopolitical tensions have driven up international oil prices, creating instability in naphtha and solvent supplies critical to paints, which use petrochemicals accounting for more than 50% of costs.
Paints rely heavily on epoxy resins and residual oils derived from crude, amplifying the strain amid high exchange rates and tariffs.
This has forced sequential price adjustments across architectural, industrial, and plant coatings, threatening profitability for companies with limited stockpiles.
A Noroo Paint spokesperson explained, “We are not receiving raw materials used in paint production on time from suppliers in China or major domestic companies.”
“If the war drags on, the impact could worsen, so we are also considering securing additional raw materials in advance and expanding our reserves.”
KCC, the largest paint and chemical company in South Korea, cited raw material shortages and Middle East risks in notices sent March 24, with hikes starting April 6 on products for apartments, villas, power plants, and more.
Samhwa Paint is targeting thinners first at around 40%, Noroo Paint up to 55%, and JEVISCO plans at least 15% from April 1.
Industry sources confirm these moves as inevitable amid the “high oil tsunami.”
Rising paint costs could ripple into construction, automobiles, appliances, and pre-sale housing prices, as paint is essential across sectors.
Distributors fear packaging crises from naphtha shortages, potentially hiking prices for food containers, snacks, and plastics.
The government is consulting on support measures and considering naphtha export controls, while criticizing delayed responses to halted petrochemical operations.
Firms are stockpiling for months but are accelerating R&D on biomass and recycled materials to counter prolonged disruptions.
Meanwhile, half of the naphtha supply relies on imports, but the Strait of Hormuz shutdown has sharply worsened availability issues.
Much of the rest comes from China, which has also halted shipments.
The Ministry of Trade, Industry and Energy of South Korea reported on March 17 that naphtha prices hit USD 898 per ton, a 44.84% weekly jump, while ethylene climbed to USD 1,150 per ton, up 72.24% from the prior week.
Soaring shipping costs are adding further strain to raw material costs.
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