LG Chem Shuts Down Yeosu Unit 2, Triggering Chain Shutdowns Across South Korea’s Petrochemical Industry

According to Zhusu View on March 25, South Korea's largest petrochemical company, LG Chem, has decided to shut down some facilities at its Yeosu core plant due to the prolonged disruption of naphtha supply caused by the blockade of the Strait of Hormuz. According to industry sources on the 23rd, LG Chem plans to shut down its No. 2 unit located in the Yeosu National Industrial Complex this week and will formally announce the decision in the coming days. Currently, LG Chem operates two naphtha cracking (NCC) units in Yeosu: the No. 1 unit has an annual capacity of 1.2 million tons, and the No. 2 unit has an annual capacity of 800,000 tons.

According to the China Trade Remedy Information Network, on March 21, the Ministry of Commerce and Industry of India issued a notice, making an affirmative preliminary ruling on PET films [Polyethylene Terephthalate Film (PET Films)] originating from or imported from China, Bangladesh, and Thailand, and recommending the imposition of provisional anti-dumping duties on products from these countries. The rates are as follows: China at 56-216 USD/ton, Bangladesh at 206-330 USD/ton, and Thailand at 139-245 USD/ton. For detailed tariff information, see the attached table. Additionally, in light of the withdrawal application submitted by the petitioner, the anti-dumping investigation on PET films originating from or imported from the United States has been terminated. The products under investigation are PET films with a thickness of 8 to 100 microns, excluding PET films for solar panels and thermal lamination films. The Indian customs codes for the products under investigation are 39206210, 39206220, 39206290, 39206919, and 39219094. On September 30, 2025, India’s Ministry of Commerce and Industry announced the initiation of an anti-dumping investigation concerning polyethylene terephthalate (PET) film originating in or exported from China, Bangladesh, Thailand, and the United States, pursuant to an application submitted by domestic Indian companies Chiripal Poly Films Limited, Ester Industries Limited, and Vacmet India Limited. The period of investigation for dumping spans April 1, 2024, to March 31, 2025 (12 months). The injury investigation period covers the following four periods: April 1, 2021, to March 31, 2022; April 1, 2022, to March 31, 2023; April 1, 2023, to March 31, 2024; and April 1, 2024, to March 31, 2025.

  March 24 (Korea News): According to Yonhap News Agency, as Iran’s prolonged blockade of the Strait of Hormuz disrupts naphtha supply, the South Korean government is likely to implement naphtha export controls this week. On March 24, Yang Gi-wook, Director of the Industrial Resource Security Division at the Ministry of Trade, Industry and Energy (MOTIE), held a press conference at the Government Complex in Sejong and stated that MOTIE is coordinating and communicating with relevant agencies regarding plans to impose naphtha export restrictions. Naphtha is a fundamental raw material for petrochemical products; South Korea sources 55% of its naphtha domestically from local refineries, with the remainder imported.

Munich-based Wacker Chemie announced that, effective April 1, 2026, it will increase prices for polymer dispersions, redispersible polymer powders, and silicone products manufactured locally in North America by up to 10%, citing ongoing global supply chain disruptions and sustained increases in raw material and logistics costs as the reasons for the price adjustment.

PVC main contract rose 400.00 yuan within the day, now quoted at 6252.00 yuan/ton, up 6.84%.