South Korea bans petrochemical stockpiling, imposes emergency controls

South Korea will temporarily ban the hoarding of key petrochemical feedstocks and introduce emergency supply controls to stabilise supply chains amid the ongoing Iran crisis, the country’s industry ministry said on April 14.

The measures, which take effect at midnight on April 15 and will remain in place through June 30, target seven naphtha-based feedstocks, including ethylene, propylene, butadiene, benzene, toluene and xylene, along with related fractions, Reuters reports.

Under the new rules, companies handling these materials will be prohibited from stockpiling beyond 80% above inventory levels recorded during the same period last year, according to the ministry’s statement.

The move comes as governments across Asia seek to mitigate potential disruptions to energy and chemical supply chains linked to heightened tensions involving Iran, a key player in global oil and petrochemical markets.

By Sabina Mammadli