Chemicals Price Shock from the Middle East Crisis – Building Appropriate Escalation Clauses for Automotive Supply Chains

The ongoing Middle East conflict—and the effective disruption of trade flows via the Strait of Hormuz—is triggering a supply-driven petrochemicals shock that is rapidly cascading into higher prices and tighter availability of polymers, resins and chemical intermediates used across automotive industry. The disruption has been severe and immediate: the closure has removed ~20% of ethylene capacity and as much as 40% of Asian naphtha supply “out of the equation,” tightening cost curves globally.

Join our team of economists for a data-driven session built for automotive procurement and supply chain leaders who need to validate cost claims, protect margins, and maintain supply continuity:

• Industry Pain Points: Understand why the Middle East conflict is an unprecedented, supply-driven petrochemicals crisis—not a typical demand downturn and its impact on end-use industries.
• Separate Signal from Noise: Learn how to decompose supplier price increases into feedstock, energy, freight, and availability premiums to identify true cost drivers and navigate supplier renegotiations.
• Showcase: Experience a walkthrough of our proprietary cost models in the Paints & Coatings, Rubber & Tyres, and Plastic Products segments.
• Future Forecasting: Gain insights into our chemical price forecasts, that can support direct procurement within the Automotive industries.

Speakers

Ashima Tyagi

Economics Associate Director, Pricing & Purchasing, S&P Global Market Intelligence

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Michael Dall

Associate Director, Pricing and Purchasing, S&P Global Market Intelligence

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Benjamin Ng (Moderator)

Business Development Analyst, S&P Global Market Intelligence

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