Naphtha prices surge, report claims LG Chem plans to shut down its second-largest ethylene plant

GateUser-bd883c58 · 2026-03-23T23:00:50+00:00

South Korea's LG Chemical plans to close its second-largest ethylene plant due to skyrocketing naphtha feedstock prices caused by the Iran war. The plant produces 800,000 tons annually, and the closure could impact the company's performance. Fluctuations in naphtha prices have a significant effect on production costs for chemical enterprises.

GateUser-bd883c58

2026-03-23 23:00:50

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According to Reuters on March 23, LG Chem (051910.KS), South Korea’s second-largest ethylene plant, plans to shut down due to soaring naphtha prices caused by the Iran conflict. The plant is located in Ulsan Industrial Complex, with an annual capacity of 800,000 tons.

LG Chem is one of the world’s leading chemical companies, mainly producing plastics and chemical raw materials. The closure of the ethylene plant may have a certain impact on the company’s performance. Naphtha, as a primary raw material for ethylene production, has significant influence on manufacturing costs due to price fluctuations. In the current geopolitical tensions, naphtha prices may continue to rise, further increasing the costs of chemical products.

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