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LG Chem Yeosu NCC (Naphtha Cracking Center) Plant (Photo = LG Chem) |
[Alpha Biz= Kim Minyoung] Escalating geopolitical risks in the Middle East are triggering concerns over feedstock supply across South Korea’s petrochemical sector.
LG Chem has suspended operations at its No. 2 naphtha cracking center (NCC) plant located in the Yeosu National Industrial Complex in South Jeolla Province.
Industry sources warn that if the Middle East crisis persists, a broader “chain shutdown” across additional facilities could occur from April onward.
Naphtha, often referred to as the “rice of industry,” is a key feedstock used across a wide range of sectors, including home appliances, cosmetics, and packaging materials. Disruptions in its supply are therefore expected to have far-reaching impacts across manufacturing industries.
Domestic plastic and vinyl manufacturers are already facing difficulties in securing raw materials and are lowering operating rates accordingly.
As a result, prices of consumables such as packaging materials and plastic bags are rising incrementally, increasing cost burdens on small business owners and the distribution sector.
There are also signs of hoarding activity involving regulated garbage bags and packaging materials.
In response, the government plans to implement stricter measures within this week, including bans on hoarding and potential export restrictions.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
