Five Asian Chemical Producers Declare Force Majeure in a Week as Naphtha Supply Disruptions Hit Crackers

Asian petrochemical markets are facing a major disruption after five chemical producers declared force majeure within a single week, highlighting the severe impact of feedstock shortages following the closure of the Strait of Hormuz.

According to market reports, Sumitomo Chemical declared force majeure most recently, becoming the fifth Asian producer to take such action. Earlier, Chandra Asri in Indonesia and Yeochun NCC in South Korea had already announced force majeure amid feedstock constraints.

By March 5, Petrochemical Corporation of Singapore (PCS) also declared force majeure on its 1.1 million tons per year ethylene capacity located on Jurong Island. Shortly after, Aster Chemicals and Energy followed by reducing operating rates, with its cracker running at half capacity due to the same issue.

The root cause behind all five disruptions is the shortage of naphtha, a key feedstock used in steam crackers to produce base chemicals that form the foundation of products such as plastics, rubber, and packaging materials.

Most Asian steam crackers rely heavily on naphtha supplies from the Middle East, and nearly all of these shipments normally pass through the Strait of Hormuz, one of the world’s most critical energy shipping routes. After the strait was closed, these producers lost access to their feedstock within days, forcing them to declare force majeure or cut production.

The rapid sequence of disruptions—five force majeure declarations within seven days—has created a significant shock across the global petrochemical supply chain.

Market participants note that the impact is already visible in pricing, with polymer prices rising by double digits in several markets. Analysts warn that the effects could extend further across downstream industries, making plastics, packaging, and other chemical-based products increasingly expensive if feedstock disruptions persist.

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