At a press briefing at the government complex in the administrative city of Sejong on Tuesday, the Ministry of Trade, Industry and Energy said, "We are discussing with relevant ministries steps to take, which would include restrictions on exports and a ban on hoarding."
Naphtha, a primary raw material for petrochemical products, is produced domestically by refiners, accounting for about 55 percent of domestic supply, with the remainder imported. Disruptions to supply chains in the Middle East have prompted some petrochemical companies to halt operations.
The remarks came just a day after LG Chem decided to halt operations at its plant in Yeosu, South Jeolla Province, which has an annual ethylene capacity of 800,000 tons.
Yeochun NCC, an industrial complex in the same southern province, also halted its olefin conversion process to adjust output after the operating rate of its naphtha cracker declined.
The ministry said, "Export restrictions alone would not be enough to resolve the shortage, so we are also preparing emergency supplies through a supplementary budget, as well as importing substitutes."
But it added, "Exports of naphtha are not that large in volume, so we may prioritize supplies for petrochemical companies to help them maintain operations while restricting others."
Despite rising prices of naphtha, the ministry said it has no plans to directly control prices, adding that any increase would have a limited impact on consumers.
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