SCG Declares Force Majeure at Rayong Olefins Complex Amid Middle East Feedstock Disruptions

Thailand’s petrochemical producer Siam Cement Group (SCG) has declared force majeure at its Rayong Olefins Complex (ROC) in Map Ta Phut, following feedstock supply disruptions linked to the ongoing conflict in the Middle East, according to media reports.

SCG stated that the war involving Iran has severely disrupted shipping through the Strait of Hormuz, restricting the flow of key raw materials required for operations at the Rayong Olefins complex. The company warned that the situation has already negatively impacted production and could lead to further operational disruptions.

If the conflict intensifies and feedstock supply remains constrained, the producer may be forced to temporarily halt production at the site.

The ROC cracker has an annual production capacity of around 800,000 tons of ethylene and 400,000 tons of propylene, supplying downstream units including Siam Polyethylene, Thai Polyethylene, Thai Plastics and Chemicals, and HMC Polymers.

SCG’s announcement makes the Rayong facility the fifth petrochemical cracker in the Asia-Pacific region to declare force majeure this week due to feedstock shortages. Similar declarations have recently been made by Chandra Asri in Indonesia, YNCC in South Korea, and PCS and Aster in Singapore, highlighting the widening impact of Middle East supply disruptions on the regional petrochemical industry.

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