S Korea petrochemical cargoes face delays on truck drivers’ strike

28 June 2012 12:17  [Source: ICIS news]

SINGAPORE (ICIS)--The delivery of some petrochemical cargoes out of South Korea are being delayed as unionised truck drivers in the country have gone on a strike seeking wage increases and other benefits, market sources said on Thursday.

The truck driver union was preventing truck movements to and from the plants at Yeosu, a source at Honam Petrochemical said, adding that the South Korean producer has informed its polypropylene (PP) buyers in China that shipments will be delayed.

“The situation is more serious in Yeosu than in Daesan,” said the source.

The extent of the delay and grade of the material affected was not immediately known.

Similarly, some polyethylene (PE) shipments from Daelim Corp to Europe are likely to be delayed as they are still in the plant waiting to be delivered to the container yard, a source at the South Korean producer said.

“The strike started only on Monday (25 June) so there’s not so much of an impact on our delivery as yet,” said a source at epoxy resins producer Kukdo Chemical.

However, the source at Kukdo Chemical added that the company, which has a 322,000 tonne/year plant at Kumchon in Seoul, is concerned that its epoxy resins export orders will be delayed if the strike is prolonged.

Most acrylate, oxo-alcohol and plasticiser producers told ICIS that they are not concerned yet because it is the month-end and all June shipments are already on way to their respective destinations, sources said.

Additional reporting by Chow Bee Lin and Cheong Su Yeen

By: Jasmine Khoo
+65 6780 4359

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