South Korea may curb naphtha exports amid supply shortages

South Korean authorities are considering restrictions on the export of naphtha, a feedstock widely used in petrochemical and related industries, due to a growing supply shortage, Report informs via Yonhap.

"Relevant ministries are preparing to implement export restrictions on naphtha," Vice Minister of Trade, Industry, and Energy Security Yang Gi-uk said.

The move comes amid increased supply disruptions following the US and Israel military operation against Iran.

Yonhap noted that several South Korean petrochemical giants, including Yeochun NCC, have already declared force majeure on some products due to raw material shortages. Under such declarations, unforeseen and uncontrollable events prevent companies from fulfilling contractual obligations.

South Korea imports about half of its naphtha through the Strait of Hormuz, a key Middle East trade route effectively closed by the military conflict.

"If the shortage persists, we are also preparing emergency measures to regulate supplies," the vice minister added.

Last week, the South Korean government temporarily designated naphtha as a "strategic economic security commodity" to stabilize supplies and support affected companies, Yonhap reported.