Supply fallout from the Middle East conflict has knocked out roughly 70% of
global PPE (polyphenylene ether) resin output centered in Saudi Arabia’s Jubail
industrial zone; plants halted from late March after shipping through the Strait
of Hormuz was impeded. PPE resin is a key input for printed circuit boards used
in smartphones, laptops, routers and AI servers; Goldman Sachs says PCB prices
rose as much as 40% in April versus March. If resin shortages persist into
Autumn, consumer electronics price pressure could increase. US PCB maker Xunda
Technology’s shares have risen more than 400% over the past year.
