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Petrochemical, shipping firms relieved at deal to reopen Strait of Hormuz | Collector
Petrochemical, shipping firms relieved at deal to reopen Strait of Hormuz
The Korea Times

Petrochemical, shipping firms relieved at deal to reopen Strait of Hormuz

The agreement among the United States, Israel and Iran for a two-week ceasefire, conditional on reopening the Strait of Hormuz, prompted cautious optimism Wednesday in Korea's petrochemical and shipping industries, which have suffered fallout from the war in the Middle East. Despite lingering uncertainty over the peace talks, expectations are growing that vessels stranded near the Persian Gulf may resume shipments of crude and naphtha, a liquid extracted from crude and used to produce raw materials for petrochemical products such as plastic bags, food packaging and cosmetic containers. "We see the ceasefire agreement itself as a positive signal," an official at one of Korea's major petrochemical firms said on condition of anonymity. With Korea relying on the Middle East for 45 percent of its naphtha supply, domestic petrochemical firms have reduced or suspended production since the war broke out, suffering a decline in revenue. The cutbacks have fueled concerns over shortages of petrochemical products across industries. According to the Ministry of Trade, Industry and Resources, a combin

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