The move comes as ongoing disruptions in the Strait of Hormuz continue to impact regional logistics and shipment flows.
Shipment Delays Impact Supply Availability
According to market sources, supply chain disruptions have affected March loading shipments from SABIC’s east coast plants in Saudi Arabia.
Cargoes from west coast facilities are also expected to face delays due to limited vessel availability.
With an estimated capacity of around 7 million tons per year, SABIC remains a key supplier to Asian EG markets, making the disruption significant for regional supply.
Supply Pressure Builds Across Asia
This development follows SABIC’s earlier force majeure on methanol and styrene monomer sales across the Asia-Pacific region.
It also comes after another major producer declared force majeure on monoethylene glycol supply earlier this month, adding further pressure to already tight market conditions.
Prices Rise as Buyers Seek Alternatives
The tightening supply situation has pushed Asian MEG prices to their highest levels since 2022.
Buyers are increasingly looking for alternative sources to secure material, as Middle Eastern export flows remain constrained.
Market Outlook
With multiple supply disruptions and limited availability, the Asian glycol market is expected to remain tight in the near term.
Prices are likely to stay firm as buyers compete for replacement cargoes amid ongoing logistical challenges.
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