SABIC Declares Force Majeure on Styrene Monomer and Methanol Production; Middle East Chemical Operations Halted

On the afternoon of March 27, according to Cailian News, Saudi Basic Industries Corporation (SABIC) announced that the production of styrene monomer and methanol has been affected by force majeure.

It is reported that SABIC owns the world's largest single methanol production base - the factory in Jubail, Saudi Arabia, with an annual capacity of 4.7 million tons, firmly controlling the core discourse power of global methanol supply. In the styrene field, SABIC is also very strong, with a total capacity of about 1.8 million tons.

The simultaneous force majeure on SABIC's two core products has directly led to an instant increase in the global supply gap for methanol and styrene.

Crisis Escalates: Uncontrollable Forces Spread Across the Middle East, Full Production Shutdown Inevitable

More notably, force majeure has spread comprehensively across Middle Eastern countries, entering a systematic and full-scale production halt phase!

From initial chemicals such as methanol and styrene to core petrochemical products including polyethylene, polypropylene, ethylene glycol, urea, and further to LNG and sulfur, the Middle East region is either facing a complete supply cutoff or experiencing extreme supply shortages, causing the entire supply chain to come to a complete halt! According to a Morgan Stanley report, this Middle Eastern production shutdown has triggered a global force majeure domino effect, impacting chemical companies across multiple countries in Asia and Europe.

The market has already reacted ahead of time: as of 15:00 on March 27, the main contract futures price of styrene rose to 10,431 yuan/ton, with a daily increase of 5.93%.

Industry insiders have issued a warning: if the Middle East situation cannot be eased promptly and production suspensions continue to escalate, the global supply gap for chemical raw materials will further widen, leading to sustained price increases that are easy to rise but difficult to fall. Downstream industries—including plastics, paints and coatings, fertilizers, automobiles, and home appliances—will face dual pressures of soaring costs and raw material shortages, potentially triggering a chain reaction of production halts and supply disruptions.