Hanwha TotalEnergies, Korea's largest paraxylene (PX) producer, has declared force majeure on supply as the crude oil and naphtha shortage stemming from the Middle East crisis drags on. Supply concerns are expected to intensify as major PX production facilities both domestically and abroad have simultaneously halted operations for scheduled maintenance and other reasons.
According to industry sources on the 16th, Hanwha Total recently sent a force majeure notice to its customers regarding PX supply. "We have reduced production since March due to raw material procurement issues," the company stated. "Depending on the situation, we may consider additional production cuts and plant utilization rate adjustments."
The company had been maintaining production by drawing on inventory, but with stockpiles now depleted, PX supply disruptions are expected starting next month unless additional raw materials are secured.
Hanwha Total operates two PX facilities in Daesan, South Chungcheong Province, with annual capacities of 1.17 million tons and 770,000 tons respectively—the largest single-site operation in Korea. PX is a key raw material for producing polyester fiber and PET resin. Polyester fiber accounts for a significant portion of clothing, while PET resin is used in bottled water and beverage containers, instant noodle and snack packaging, and food wrapping film. Prolonged supply disruptions could trigger sharp price increases for these consumer goods.
Hanwha Total's force majeure declaration stems from a shortage of naphtha, the raw material for PX. The company directly imports condensate (ultra-light crude oil) to produce naphtha, sourcing a significant portion from the Middle East, making it vulnerable to the Strait of Hormuz blockade.
"Most of our production volume is for export to China and other markets, so the impact on domestic supply is not significant," Hanwha Total said. However, S-Oil and SK Geocentric have already halted their PX facilities domestically due to scheduled maintenance and raw material shortages, while Chinese petrochemical companies are also entering maintenance periods one after another, creating overlapping supply gaps.
"We will do our best to ensure supply so that the public does not experience inconvenience from domestic market shortages," Hanwha Total stated.
