Reduced Loads of Cracking Units in Asia Recently
2026-3-17
Recently, navigation through the Strait of Hormuz has been disrupted, making it impossible for most crude oil and naphtha from the Middle East to be shipped to Asia. Petrochemical companies in Northeast and Southeast Asia have started cutting production due to uncertain feedstock supply.
The reality is that over 60% of Asia¡äs seaborne imported naphtha comes from the Middle East. Most Asian petrochemical firms have limited naphtha storage capacity, with inventories only sufficient for 2¨C3 weeks. As conflicts in the Middle East continue to escalate, concerns over delayed or even cancelled naphtha shipments have intensified in Asia¡äs petrochemical market.
In South Korea, petrochemical companies including Lotte Chemical, Korea Petrochemical Industrial Co., Ltd. (KPIC), LG Chem, and Yeochun Naphtha Cracking Center (YNCC) are all reducing operating rates, and some have declared force majeure.
Japan is also a major naphtha importer, but its petrochemical companies are currently in the regular March¨CApril maintenance season, so the impact of this supply crisis has been limited.
Many companies in Southeast Asia also rely on Middle Eastern naphtha feedstock, with varying degrees of impact from the Strait of Hormuz disruption. According to ICIS, since March 3, several companies have declared force majeure, including Indonesia¡äs Chandra Asri, Singapore¡äs PCS and Aster Chemical, and Vietnam¡äs Hyosung Vina Chemical.
The reality is that over 60% of Asia¡äs seaborne imported naphtha comes from the Middle East. Most Asian petrochemical firms have limited naphtha storage capacity, with inventories only sufficient for 2¨C3 weeks. As conflicts in the Middle East continue to escalate, concerns over delayed or even cancelled naphtha shipments have intensified in Asia¡äs petrochemical market.
In South Korea, petrochemical companies including Lotte Chemical, Korea Petrochemical Industrial Co., Ltd. (KPIC), LG Chem, and Yeochun Naphtha Cracking Center (YNCC) are all reducing operating rates, and some have declared force majeure.
Japan is also a major naphtha importer, but its petrochemical companies are currently in the regular March¨CApril maintenance season, so the impact of this supply crisis has been limited.
Many companies in Southeast Asia also rely on Middle Eastern naphtha feedstock, with varying degrees of impact from the Strait of Hormuz disruption. According to ICIS, since March 3, several companies have declared force majeure, including Indonesia¡äs Chandra Asri, Singapore¡äs PCS and Aster Chemical, and Vietnam¡äs Hyosung Vina Chemical.