Korea reviewing naphtha export restrictions amid Mideast supply disruptions: officials

The government is considering imposing restrictions on naphtha exports as Korea is facing supply shortages of the material, widely used across petrochemical and other industries, due to persisting geopolitical tensions in the Middle East, Seoul officials said Tuesday. "Related ministries are preparing for the implementation of naphtha export restrictions," Yang Ghi-wuk, deputy minister for trade, industry and resource security, said in a daily briefing on resources supplies amid the Mideast crisis. The preparations come as the country is seeing increasing disruptions in naphtha supplies following the U.S. and Israeli airstrikes against Iran late last month, with Yeochun NCC and other companies announcing "force majeure" for some of their products due to naphtha shortages. Force majeure refers to the occurrence of an unforeseeable and uncontrollable event that prevents a company from fulfilling a contract. Korea imports around half of its naphtha through the Strait of Hormuz, a major Middle Eastern trade route, which has effectively been closed due to the war. "In case (the supply shortag

Go to News Site