Supply Extremely Tight! LG Chem Declares Force Majeure on Export Contracts for Di-Octyl Terephthalate (DOTP)

LG Chem Ltd. will apply a price increase for certain shipments scheduled for March-April, according to a client letter obtained by Platts, part of S&P Global Energy.Declaration of force majeure on the export contract for Dioctyl Terephthalate (DOTP) due to severe disruption in the operation of its oxo alcohol plant caused by geopolitical tensions.。

In its letter, LG Chem stated: "Recent geopolitical tensions have disrupted the supply of naphtha and propylene, causing severe operational disruptions to our oxo-alcohol plant. As a result, the supply of alcohols—key raw materials for plasticizer production—has been severely constrained."

Furthermore, due to an extreme shortage of alcohol supply in the domestic market, we are unable to secure alternative sources. Under these circumstances, which are beyond reasonable control, we regret to notify you that LG Chem hereby declares force majeure immediately on certain export contracts for plasticizer (DOTP), effective until further notice.

LG Chem did not immediately respond to a request for comment on this matter.

In the letter, the company did not specify which production bases would be affected by the force majeure, but sources said that LG Chem's In the letter, the company did not specify which production bases would be affected by the force majeure, but sources said that LG Chem's “” “”“” In the letter, the company did not specify which production bases would be affected by the force majeure, but sources said that LG Chem's facilities in [specific location] would be impacted. [specific location]Naju, Jeolla NamdoDOTP product supply in the factory may be affected.

On March 5, Platts assessed the CFR price of DOTP in China.USD 1,085 per metric ton, up $75/MT week-over-week; DOTP Southeast Asia CFR price rose $75/MT week-over-week toUSD 1,135 per metric ton。