Asia petchem chain rattled by Hormuz disruption as plants curb output, supply fears mount

The escalating conflict in the Middle East is sending shockwaves through Asia’s petrochemical industry, disrupting feedstock supply chains and forcing producers to adjust operations across the region. With shipping routes around the Strait of Hormuz severely affected, deliveries of crude, naphtha, LPG, and other key raw materials have been delayed, triggering force majeure declarations, plant shutdowns, and reduced operating rates at multiple facilities.

These disruptions are beginning to ripple through Asia’s polymer and monomer markets, tightening supply and fueling sharp price volatility. At the same time, traders and converters are grappling with rapidly rising offers and unprecedented uncertainty regarding shipments and deliveries. As the situation evolves, market players warn that the supply chain could tighten further if the conflict continues to affect energy flows.

Feedstock crunch forces NEA producers to curb or halt operations

Regional polymer markets: Offers “unimaginably high” or suspended

Market participants across Asia say the war has created an unprecedented level of volatility in polymer and monomer markets, with prices rising sharply while trading activity remains limited.

In PP and PE markets : China’s local markets as well as Vietnam and India have seen huge spikes so far this week, with prices changing daily.

In PVC markets: A very similar scenario has been in place as China’s export prices hit 3-year high while import prices in India saw their highest of the past 3 and a half years. Southeast Asia’s PVC markets,likewise, climbed to its highest point since July 2022.