March 5, 2026 [ Reuters]- Several Asian refineries and petrochemical companies were forced to cut runs and declare force majeure as the U.S.-Israel war on Iran disrupted crude and feedstock exports from the Middle East.
Asian ​steam crackers, which source more than 60% of their naphtha feedstock from the Middle East, have been quick to ‌declare force majeure on petrochemical supplies to customers.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
Three operators told Reuters they are curtailing run rates to roll over some of their feedstock into next month so they can keep plants running and avoid shutdowns even if imports fall short.

It takes up to two weeks to restart a steam ​cracker unit, two operators said, and plants typically don’t keep more than one month of feedstock on hand.
Here are some ​of the latest developments:

CHINA
Shell’s (SHEL.L), opens new tab south China petrochemical joint venture with China’s CNOOC plans to shut a steam ⁠cracker soon and told domestic customers it is unable to supply some products, two people with direct knowledge of the matter said ​on Friday.
CNOOC and Shell Petrochemicals Co Ltd, or CSPC, plans to close a 1.2 million metric ton-per-year (tpy) cracker in Huizhou, one ​of its two crackers with total capacity of 2.2 million tpy, due to disruptions in feedstock supplies, the sources said.
Zhejiang Petrochemical Corp, a major Chinese refiner backed by Saudi Aramco (2222.SE), opens new tab, shut a 200,000-barrel-per-day unit, bringing forward maintenance in response to the Middle East conflict’s impact on crude supply.
Another Chinese refiner backed ​by Aramco, Fujian Refining and Petrochemical Co, or FREP, shut its 80,000 bpd crude unit – its smallest – for an unspecified amount of ​time, two industry sources familiar with the matter said.
China has also urged refiners to suspend signing new contracts to export fuel, and to try to cancel ‌shipments already ⁠committed, people familiar with the matter said.

INDIA
India’s Mangalore Refinery and Petrochemicals (MRPL.NS), opens new tab has shut a crude unit and some secondary units at its 300,000-barrel-per-day refinery due to oil shortage, sources said.

SOUTH KOREA
South Korean petrochemical company Yeochun NCC has cut its output and declared force majeure on its supply as it is unable to receive naphtha feedstock due to the Strait of Hormuz blockade, according to a source with knowledge of ​the matter and a company ​letter reviewed by Reuters.

SINGAPORE
Singapore petrochemical ⁠firm PCS declared force majeure on shipments as the Middle East war disrupted maritime transportation and supply chains, according to a letter reviewed by Reuters and three people with knowledge of the matter.
Meanwhile, Singapore refiner ​and petrochemical major Aster Chemicals and Energy declared force majeure regarding supplies, a company spokesperson said on ​Friday.
Products covered by ⁠the force majeure include ethylene and propylene. Aster’s steam cracker was running at around 50% on Friday, having restarted at the end of February, sources said.

INDONESIA
Indonesian petrochemical producer Chandra Asri (TPIA.JK), opens new tab has declared force majeure on all contracts as the Middle East conflict disrupted its raw material supply, it ⁠said in ​a statement reviewed by Reuters.

VIETNAM
Vietnam’s Binh Son Refining and Petrochemical asked the government to ​prioritize supplying domestically produced crude oil to its Dung Quat Refinery while limiting crude exports until at least the end of the third quarter this year to ​ensure national security, it said in a statement earlier this week.
.