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As ethylene supply threat lingers, government, industry work to mitigate risk

Published: 18 Mar. 2026, 13:14

An liquefied natural gas tanker at anchor is seen as traffic is down in the Strait of Hormuz, amid the U.S.-Israeli conflict with Iran, in Shinas, Oman, on March 11. [REUTERS/YONHAP]

The government is closely cooperating with the shipbuilding and chemical industries to make sure there are no disruptions in the short-term ethylene supply, the industry ministry said Wednesday, vowing continued efforts to minimize supply chain risks stemming from the Middle Eastern turmoil.

Korea has been facing possible disruptions in supplies of ethylene, used in shipbuilding and other sectors, in connection to supply shortages of naphtha, mostly imported through the Strait of Hormuz, effectively closed due to the Iran crisis.

To prevent supply disruptions for the shipbuilding sector, the Ministry of Trade, Industry and Resources said it assessed the demand for the material from local shipbuilders last week and devised a short-term supply plan.

Ethylene, a material widely used in the shipbuilding sector for cutting steel, is produced by cracking naphtha.

The ministry said the government is doing its utmost to minimize disruptions in supply chains of ethylene and naphtha, working to secure alternative import sources for naphtha.

It is also reviewing measures to reduce the cost burden for naphtha imports and restrict exports of the material, the ministry added.

Yonhap