Tweet: 2031196914147102762

Author: @Gaurab

Date: Tue Mar 10 02:34:16 +0000 2026

URL: https://x.com/i/status/2031196914147102762

Sumitomo Chemical declared force majeure yesterday, making it the fifth Asian chemical company in a single week. First Chandra Asri in Indonesia, then Yeochun NCC in South Korea. By March 5, Petrochemical Corporation of Singapore had declared force majeure on 1.1 million tons of ethylene capacity on Jurong Island. Aster followed a day later with its cracker running at half capacity. The root cause is the same for all five: naphtha, the feedstock these plants break down into the base chemicals behind plastics, rubber, and packaging. Asian steam crackers source most of their naphtha from the Middle East, and virtually all of it transits the Strait of Hormuz. When the Strait closed, all five lost their feedstock within days. Five force majeures in seven days. This is a massive disruption of the chemicals that hold the global economy together. Polymer prices are already up double digits. Everything downstream gets more expensive from here.

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