How is the Strait of Hormuz disruption reshaping the global paints and coatings industry?

The Strait of Hormuz has long been recognised as one of the world’s most strategically important energy bottlenecks. Nearly one-fifth of global oil consumption passes through this narrow waterway, making any disruption a matter of international economic concern. For the paints and coatings industry, which relies heavily on petrochemical feedstocks, shipping networks, and energy-intensive manufacturing, instability in the Strait of Hormuz is proving to be more than just a regional geopolitical issue—it is becoming a major supply chain challenge with global implications.

The Paints and Coatings Industry’s Dependence on the Gulf Region

The global paints and coatings industry is heavily dependent on raw materials derived from crude oil and natural gas. Critical inputs such as solvents, resins, polyurethane intermediates, acrylic monomers, epoxy resins, and various additives come from petrochemical value chains that are mainly located in the Middle East, especially in Saudi Arabia, the United Arab Emirates (UAE), Qatar, and Kuwait. A substantial share of these raw materials is transported through the Strait of Hormuz before reaching paints and coatings manufacturing hubs across Europe, Asia, and North America.

Rising Raw Material Costs

One of the immediate consequences of a Hormuz disruption is the surge in crude oil prices. Higher oil prices directly affect the cost structure of paint and coating manufacturers because petroleum-based inputs account for a substantial share of production expenses.

When crude prices rise:

• Solvent costs increase

• Resin prices climb

• Transportation expenses escalate

• Packaging materials become more expensive

• Energy costs for manufacturing plants rise

Industrial wood coatings, automotive coatings, protective coatings, and marine coatings are particularly vulnerable because these segments consume large volumes of petrochemical-derived materials.

Recently, numerous raw material suppliers and chemical manufacturers implemented significant price increases across various product categories in response to rising feedstock, energy, and logistics costs.

For instance, BASF announced a global price increase of up to 20% for its portfolio of antioxidants, process stabilisers, and light stabilisers used in plastic applications. Subsequently, the company introduced an additional price increase of up to 25% for the same product portfolio, effective immediately or as permitted under existing contracts.

WACKER also announced price increases for its resins, dispersions, and dispersible polymer powders portfolio.

In Latin America, Sun Chemical Packaging and Graphics implemented price increases across its range of nitrocellulose-containing products due to continued and substantial increases in nitrocellulose raw material costs.

Additionally, BASF raised prices for its commodity amines portfolio in Europe by up to 30%, with selected products subject to even higher increases.

Similarly, TOYOCHEM CO., LTD. announced price revisions for its pressure-sensitive adhesives, resins, paints, and hot-melt products, effective from May 1, 2026.

Shipping Delays and Logistics Bottlenecks

Disruptions in the Strait of Hormuz create significant logistical challenges across the paints and coatings supply chain. Shipping companies often respond by rerouting vessels, increasing insurance premiums, reducing transit through high-risk zones, and imposing emergency surcharges. For paints and coatings producers, these measures result in longer lead times for critical raw materials and higher transportation expenses. Manufacturers operating with lean inventory models are particularly vulnerable, facing an increased risk of supply shortages and production interruptions.

Asia remains the world's largest paints and coatings production hub, led by major manufacturing countries such as China, India, South Korea, and Japan. These markets rely heavily on imported crude oil and petrochemical intermediates to support their production activities. Consequently, any disruption in supply can significantly impact the industry by increasing manufacturing costs, reducing plant operating rates, weakening export competitiveness, and triggering regional price adjustments across the value chain.

Manufacturing Disruptions Across the Coatings Industry

The Middle East conflict also had a direct impact on paints and coatings manufacturing production. Beyond rising raw material prices and logistics disruptions, escalating security concerns forced several manufacturers to temporarily adjust or suspend operations in affected regions. For instance, Jotun temporarily shut down factories and warehouses across several Middle Eastern countries immediately following the escalation of the conflict, prioritising employee safety and operational risk management. Although production resumed shortly thereafter, the incident highlighted the vulnerability of regional manufacturing operations to geopolitical instability and demonstrated how quickly disruptions can spread throughout the global paints and coatings supply chain.

Future Outlook

While short-term disruptions may cause volatility, the broader paints and coatings industry is likely to emerge with a more diversified and resilient supply chain structure.

Key trends expected over the next five years include the following:

• Greater regionalization of production

• Increased investment in alternative raw materials

• Higher strategic inventories

• More localized sourcing networks

• Continued pricing pressure across multiple coating segments

Conclusion

The Strait of Hormuz remains a critical artery for the global petrochemical trade, and any disruption reverberates across the entire paints and coatings value chain. From rising resin and solvent prices to shipping delays and strategic sourcing shifts, the industry is being forced to rethink how it secures raw materials and manages risk.

For coating manufacturers, distributors, and end-users, the message is clear: geopolitical resilience is becoming just as important as manufacturing efficiency. The companies that successfully adapt to this new reality will be better positioned to navigate future disruptions and maintain competitiveness in an increasingly uncertain global market. In many ways, the Strait of Hormuz disruption is not merely a temporary crisis—it is accelerating the transformation of the global paints and coatings supply chain.

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