SEOUL, July 28 (AJP) - Naphtha supplies in South Korea are expected to remain stable through August despite renewed tensions in the Middle East, the Ministry of Trade, Industry and Resources said on Tuesday.
At an emergency meeting at the Korea Chamber of Commerce and Industry in central Seoul, government officials and industry representatives assessed supplies for naphtha and petrochemical products and discussed contingency measures.
The meeting came amid growing concerns that renewed tensions in the Middle East could once again disrupt imports of naphtha, a key feedstock for petrochemicals used to make rubber, plastics, synthetic fibers and packaging materials.
The ministry said domestic petrochemical producers have secured enough naphtha to meet demand through August, with supplies at least on par with a year earlier. Inventories of petrochemical products also remain stable, suggesting the latest developments are unlikely to disrupt domestic naphtha supplies in the short term.
But it said that it will continue monitoring supply conditions at home and abroad while seeking to secure additional naphtha shipments for the coming months should tensions in the Middle East persist.
"Naphtha is a critical raw material for the petrochemical industry, and we will work closely with the industry to prevent any disruption to supplies," Yang Gi-uk, a senior ministry official, said.
South Korea relies on imports for about 45 percent of its naphtha demand, with roughly 77 percent of shipments coming from the Middle East.
During the initial phase of the conflict, when the U.S. and Israel launched joint strikes on Iran in late February, fears of supply disruptions prompted the government to ban hoarding along with other measures to stabilize supplies.
At an emergency meeting at the Korea Chamber of Commerce and Industry in central Seoul, government officials and industry representatives assessed supplies for naphtha and petrochemical products and discussed contingency measures.
The meeting came amid growing concerns that renewed tensions in the Middle East could once again disrupt imports of naphtha, a key feedstock for petrochemicals used to make rubber, plastics, synthetic fibers and packaging materials.
The ministry said domestic petrochemical producers have secured enough naphtha to meet demand through August, with supplies at least on par with a year earlier. Inventories of petrochemical products also remain stable, suggesting the latest developments are unlikely to disrupt domestic naphtha supplies in the short term.
But it said that it will continue monitoring supply conditions at home and abroad while seeking to secure additional naphtha shipments for the coming months should tensions in the Middle East persist.
"Naphtha is a critical raw material for the petrochemical industry, and we will work closely with the industry to prevent any disruption to supplies," Yang Gi-uk, a senior ministry official, said.
South Korea relies on imports for about 45 percent of its naphtha demand, with roughly 77 percent of shipments coming from the Middle East.
During the initial phase of the conflict, when the U.S. and Israel launched joint strikes on Iran in late February, fears of supply disruptions prompted the government to ban hoarding along with other measures to stabilize supplies.
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