Supreme Petrochem Declares Force Majeure on PS and EPS Amid Supply Disruptions

India-based Supreme Petrochem has declared force majeure on supplies of polystyrene (PS) and expandable polystyrene (EPS), citing raw material shortages and ongoing shipping disruptions linked to the Strait of Hormuz situation.

The company stated that supply commitments under existing orders, confirmations, and invoices are being impacted due to circumstances beyond its control.

Feedstock Shortage Adds Pressure

Availability of styrene monomer, the key raw material, has been under strain since the beginning of the year.

Several suppliers across Asia and the Middle East have faced maintenance shutdowns and unexpected production issues, tightening overall supply.

Logistics Issues Disrupt Deliveries

In addition to feedstock constraints, the company highlighted major logistical challenges:

• Container shortages
• Vessel disruptions
• Delays across key shipping routes

Some March shipments are currently stuck in transit or at transshipment hubs, while others have been returned to the plant due to ongoing disruptions.

Recovery May Take Time

The company indicated that even if geopolitical conditions improve, the market may take several months to stabilize.

Future deliveries are also expected to face additional costs due to higher raw material prices, freight charges, insurance, and security expenses.

Market Outlook

With both supply chain disruptions and feedstock shortages continuing, the PS and EPS market is expected to remain tight in the near term.

Availability challenges and rising costs may continue to impact buyers in the coming months.

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