South Korea will ban hoarding of key petrochemical feedstocks and products starting Wednesday, the government said, as the Iran war raises the risk of further supply disruptions.
The industry and finance ministries said in a joint statement Tuesday that they will issue and enforce the ban from midnight.
Supply disruptions are already starting to hit parts of the petrochemical market, as rising naphtha prices driven by Middle East tensions push up costs, squeeze production and heighten worries about hoarding.
The measure covers seven naphtha-derived base feedstocks — ethylene, propylene, butadiene, benzene, toluene, xylene and other light oil fractions.
Companies will be barred from holding inventories of the seven feedstocks at more than 80 percent of the level held during the same period last year in the 30 days before an inspection begins.
The government said it may expand the restrictions to items derived from the base feedstocks if they are additionally deemed at risk of supply disruptions.
It may also order emergency adjustments to production, shipments and sales of the affected items if supply concerns persist despite the measures, officials said. (Yonhap)
