PROPLASTICS says geopolitical tensions in the Middle East have disrupted global supply chains for key raw materials, placing pressure on production costs and market stability as it navigates a difficult operating environment.
In a trading update for the three months to March 2026, the Zimbabwe Stock Exchange-listed plastics products manufacturer said disruptions in the supply of PVC resin, a critical raw material used in its production processes, had triggered adverse price movements.
The company also said rising fuel costs are increasing inflationary pressures across the economy.
The company warned that continued volatility in international markets and uncertainty surrounding fuel pricing could potentially weigh on profit margins and delay some project timelines.
The Middle East conflict between the US and Israel against Iran has triggered significant global economic instability, characterised by surging oil and gas prices, strained supply chains and rising inflation as of early 2026.
Key impacts include a more than 50 percent surge in global oil prices and significant disruption to oil and gas shipping in the Strait of Hormuz, which handles about a fifth of global oil and LNG gas shipments, as well as other key products like fertilisers.
As of mid-May 2026, Brent crude oil prices have risen to roughly U$104–US$105 per barrel from around US$70 in early 2026, marking an increase of roughly US$34-US$35 per barrel since the conflict in the Middle East intensified.
“The ongoing geopolitical conflict in the Middle East presents challenges to market stability. The supply chain for our key raw material (PVC resin) has been disrupted. Raw material prices have already been negatively affected as a result.
“In addition, fuel prices significantly increased towards the end of the quarter, exerting inflationary pressure on the economy,” Proplastics chairman Mr Gregory Sebborn said in the trading update.
Despite the difficult trading conditions, Proplastics said it remains focused on sustaining growth through strategic market expansion and strengthening key customer relationships.
The company is actively pursuing opportunities in the irrigation and civil engineering segments while consolidating major merchant and mining accounts, sectors that continue to support demand for plastic piping and related infrastructure products.
Management also reported positive developments in export markets, with export contribution expected to improve significantly in the coming periods as regional demand strengthens.
“Our enhanced production facility is well-positioned to meet growing demand across our entire product range,” he said.
Operational performance during the quarter remained strong, driven by increased infrastructure and construction activity across Zimbabwe and the region.
Sales volumes in the period under review rose 35 percent to 1 861 tonnes from 1 376 tonnes recorded in the comparable period last year, driven mainly by projects undertaken across the country and regional markets.
Production volumes also increased by 22 percent, enabling the company to improve order fulfilment and replenish fast-moving inventory lines.
Although raw material and fuel price increases continue to exert pressure on operating costs, the company said it managed to maintain margins in line with prior-year levels through production efficiencies and disciplined cost management.-herld
