FACTBOX: More chemical plant shutdowns, force majeures reported in Asia

More chemical plant shutdowns and force majeures were announced March 6 in Asia as concerns about a feedstock supply crunch have spread to the downstream sector, market sources said.

Shipping disruptions from the Middle East to Asia continued on March 6 amid the war in the Middle East, market sources said.

Steam crackers

• Singapore's PCS declared force majeure March 5 due to disruptions to maritime transportation and the supply chain, according to a notice to customers seen by Platts, part of S&P Global Energy. The company has a combined ethylene production capacity of 1.09 million metric tons/year in Singapore.
• South Korea's LG Chem plans to cut operating rates to a minimum of 60% capacity at all its naphtha-fed steam crackers in Yeosu and Daesan, effective next week, a company source said March 5. The company has three naphtha-fed units with a combined ethylene capacity of 2.95 million mt/year.
• South Korea's Yeochun NCC declared a force majeure as the company is "facing a critical disruption in the procurement of raw materials" due to the blockade of the Strait of Hormuz, the company said in a letter to customers March 4.
• South Korea's Lotte Chemical has brought forward the planned maintenance of its Yeosu naphtha-fed steam cracker from the end of April to the end of March, amid issues with ethylene procurement, a company source said March 3. The unit is able to produce 1.23 million mt/year of ethylene.
• Indonesia's Chandra Asri declared a force majeure event March 2 on ethylene downstream product supplies to customers, effective immediately, from its naphtha-fed steam cracker, two company sources and two traders in Asia told Platts March 3. The company's cracker has an ethylene capacity of 900,000 mt/year.
• South Korea's GS Caltex has lowered the operating rate of its naphtha-fed steam cracker in Yeosu by 20% to 63%-65% as of March 4 from 83%-85% in February, with the run rate expected to remain at such levels throughout March, a company source said March 4. The unit is able to produce 900,000 mt/y of ethylene.

Downstream

• Singapore's Aster Chemicals and Energy declared a force majeure on styrene monomer shipments on March 6, according to three South Asia-based buyers, a domestic trader as well as a company spokesperson. The company has a 550,000 mt/year styrene plant in Singapore.
• China's CNOOC and Shell Petrochemicals announced a force majeure on butadiene supplies "due to the situation in the Middle East and its impact on upstream feedstock supply," the company said in a March 5 letter to customers, seen by Platts, part of S&P Global Energy. The company has a 345,000 mt/year butadiene plant in Huizhou, Guangdong.
• South Korea's LG Chem has declared force majeure on certain dioctyl terephthalate March-April shipment export contracts as of March 6, citing "significant disruptions" to its oxo-alcohol plant operations due to geopolitical tensions, according to a customer letter seen by Platts. The company produces 110,000 mt/year of DOTP, 56,000 mt/year of non-phthalate plasticizer and 7,000 mt/year of trioctyl trimellitate.
• Asian vinyl acetate monomer producer, CCD Singapore, has declared force majeure on its products due to the conflict in the Middle East and supply disruptions to maritime transportation, according to a customer letter dated March 6, seen by Platts. The company has a 350,000 mt/year VAM plant in Jurong Island, Singapore.
• South Korea's Hanwha Solutions declared a force majeure event March 6 on its ethylene dichloride product supply due to unforeseen disruption in the procurement of a key raw material, the company said in a letter to customers seen by Platts on March 6.
• China's Shen Hua Chemical Industrial will reduce the operating rates of its rubber plants from 80% at present to 40% from April due to tight butadiene feedstock supplies, a company source said March 6. The company has a 220,000 mt/year of styrene-butadiene-rubber and a 70,000 mt/year of polybutadiene rubber plant in Nantong, China.

Prices

• The Platts-assessed CFR China butadiene price benchmark surged $230/mt week on week to $1,500/mt on March 6, the highest level since Oct. 24, 2024, when it was assessed at $1,520/mt, Platts data showed.
• Platts assessed styrene monomer CFR China and FOB Korea at $1,171/mt and $1,181/mt, respectively, on March 6, up $35/mt day over day amid a jump in the domestic China market. The CFR China marker was last assessed higher at $1,183/mt on June 12, 2024.
• Platts assessed DOTP CFR China at $1,085/mt on March 5, up $75/mt week over week. DOTP CFR Southeast Asia was assessed up $75/mt week over week to $1,135/mt.
• Asian EDC prices rose to 13-month highs on March 5. Platts assessed EDC CFR Far East Asia at $245/mt and CFR Southeast Asia at $250/mt on March 5, both rising $25/mt week over week.