12/25/2023 0 Comments Trucker strike aug 31![]() The strike has affected about an estimated Won 500 billion ($388.5 million) in petrochemical shipments as of June 12, six days after the union action began, the Ministry of Trade, Industry and Energy said in a statement on June 13.Īltogether, the strike has caused production and shipment disruptions totaling Won 1.568 trillion, the ministry said. tanks and polymers can't get out," a Korean producer said. "South Korea YNCC may cut production again because the logistics in Korea is on strike right now. ![]() However, if downstream purified terephthalic acid, or PTA, and polyester inventory pile up due to the logistic disruptions, paraxylene demand and operating rates might be affected.Ī South Korean propylene producer added that "with bloating inventories, some crackers will have to cut their run rates to mitigate their exceedingly high inventories.Īnother South Korean propylene trader said this could have a downward pressure on the domestic petrochemical market as sellers divert their cargoes to overseas buyers. The impact of the strike was heard less significant on South Korea's paraxylene producers as such liquid chemical is transported by pipeline rather than trucks, several sources based in South Korea said. "Bulk chemicals moved by pipeline from shore to ship have not much impact for small packing heavy delays," another trader said. The downstream polymers - which are mainly solid format - such as polypropylene and polyethylene, might be heavily affected by the piling up inventories and logistics disruptions, market sources said. In the downstream polypropylene sector, a South Korean supplier said that although the current situation remained fluid, export shipments for the week would likely be delayed for at least one week, with further delays expected. "It will slow delivery of products and inventory goes higher," the producer said. "I think if it lasts longer than expected, it will disrupt the Korean logistics system," said a propylene producer in South Korea. The MTBE price has already been buoyed by higher crude oil price amid Russia-Ukraine war, with the summer driving season approaching.Ī propylene producer in South Korea said that most products in the country relied on truck shipment and a prolonged strike might cripple the supply chain. "If the situation continues for a long time, the spot MTBE price might be affected," the trader added. "We have difficulties in procuring the methanol feedstock by tank lorries, which might delay the production process significantly and end up in higher logistics and feedstock costs," an MTBE trader based in Seoul. Several petrochemical plants in Yeosu and Daesan were heard to have been suffering from the feedstock procurement due to the strikes, according to the market sources. The latest talks between the South Korean Ministry of Land, Infrastructure and Transport and the union on June 13 were unsuccessful. The Cargo Truckers Solidarity union launched the strike on June 8, demanding the extension of a minimum wage system set to expire in 2022. ![]() ![]() The logistics disruption was expected to mar downstream petrochemical shipments especially, which heavily rely on inland transportation. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |