Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

Raw material snarls in Korea to ripple across Asia factories

by
June 14, 2022
in Investing News
0
Raw material snarls in Korea to ripple across Asia factories
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

SOUTH KOREA’S trucker strikes are threatening to disrupt wider supply chains in Asia as warehouses fill up with undelivered raw materials used to make everything from clothing to cars.

Petrochemicals have been one of the hardest hit sectors by the week-long action by truck drivers. Prolonged disruptions to logistics are likely to force South Korean companies that supply a diverse array of chemical products to cut production, impacting factories elsewhere in Asia that use the material to make consumer goods.

LG Chem Ltd. and Hanwha Totalenergies Petrochemical Co. warned Monday that they would most likely have to at least partly suspend output at some plants if the strike continues. Hanwha Solutions Corp. has reduced shipments of polyvinyl chloride and polyethylene by 50%, while its solar panel exports have also been affected, the company said Tuesday.

Companies told authorities they are cutting output at Yeosu National Industrial Complex — home to some 297 petrochemical firms — as they have little room for stockpiles, according to a city official.

The situation is concerning as South Korea is a major exporter of the chemical paraxylene to the Chinese textile industry and one of the largest sellers of PVC to Asian factories, according to Parsley Ong, the head of Asia energy and chemicals research at JPMorgan Chase & Co. The nation also exports synthetic latex and acrylonitrile butadiene styrene used in the auto industry to Northeast Asia and elsewhere in the region.

“The trucker strike increases the challenges that chemical producers are already facing from high feedstock costs and a demand slowdown,” Ong said in an e-mailed reply to queries.

The disruption is dealing a further blow to ethylene cracker operators, which transform naphtha from refineries into plastic products. About 20 million tons per annum of ethylene capacity across Asia has already cut operating rates due to a slowdown in the global economy, according to JPMorgan estimates.

Shipping delays may add to the problems. At the port of Busan, wait times for export containers have surged to 11 days, compared with the median dwell time of three days in the past three months, according to logistics intelligence provider Project44.

The logistics snarls may also impact raw materials coming into South Korea. Import containers are waiting 14 days at the port, up from four days before the strikes, according to Project44.

Yard capacity at the world’s seventh-biggest container port is fast approaching 80%, compared with about 70% in May, as container boxes stack up, according to data from the transport ministry Tuesday. South Korea’s HMM Co. said that while its ships are loading and unloading cargo at Busan without major issues, operations will start to be affected should the strike drag on into this week. — Bloomberg

ShareTweetPin

Related Posts

Stocks decline on profit taking, recession fears
Investing News

Stocks decline on profit taking, recession fears

August 23, 2022
Peso climbs vs dollar as RTB offer starts
Investing News

Peso climbs vs dollar as RTB offer starts

August 23, 2022
PNR cancels bids for 3 projects after finding them ‘non-feasible’
Investing News

PNR cancels bids for 3 projects after finding them ‘non-feasible’

August 23, 2022
Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Next Post
PHL seen to expand 6% this year

PHL seen to expand 6% this year

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Russia sends UK gas prices soaring again

Russia sends UK gas prices soaring again

July 27, 2022
Supermarkets accused of exploiting fuel prices for ‘blatant profiteering’

Supermarkets accused of exploiting fuel prices for ‘blatant profiteering’

July 22, 2022
Filipinas battle Singapore after 1-0 stunner against Australia

Filipinas battle Singapore after 1-0 stunner against Australia

July 5, 2022
Chinese defense minister says country’s nuclear arsenal ‘for self-defense’

Chinese defense minister says country’s nuclear arsenal ‘for self-defense’

June 12, 2022
Octopus Energy submits the only bid for collapsed supplier Bulb Energy in auction

Octopus Energy submits the only bid for collapsed supplier Bulb Energy in auction

July 20, 2022
Cocolife Loans: A new support to finance and reach your dreams

Cocolife Loans: A new support to finance and reach your dreams

August 2, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.