South Korea will fully ban naphtha exports starting from the 27th, with the ban initially set for 5 months.

The South Korean Ministry of Trade, Industry and Energy announced that starting from midnight local time on the 27th, it will completely ban the export of naphtha to alleviate the domestic supply tightness of naphtha.

At midnight local time on the 27th, the South Korean Ministry of Trade, Industry and Energy published “Regulations on Restricting Naphtha Exports and Stabilizing Supply and Demand” and implemented them immediately, with a provisional term of five months. The new regulations require that all domestically produced naphtha in South Korea is prohibited from export, and signed orders will also be suspended, except in cases approved by the Minister of Industry. The department explained that previously about 11% of domestically produced naphtha was for export, and after the new regulations are implemented, this portion of capacity will be fully redirected to the domestic market.

At the same time, the South Korean government has initiated strong market control measures: daily listening to companies about the dynamic data on naphtha production, import, usage, sales, and inventory. If a company’s weekly outbound volume decreases by more than 20% compared to the same week last year, it will be deemed as hoarding, and the government may issue orders to adjust sales and inventory.

South Korea relies on imports for 45% of its naphtha, with imports from the Middle East accounting for as much as 77%. Due to the ongoing conflicts in the Middle East, the country’s naphtha import supply chain is under significant pressure.

(Source: CCTV News)