As concerns arose that the supply of ethylene—including "cutting ethylene," a special gas needed to build ships—was disrupted due to a U.S.-Iran war, the government said on the 18th that it had "taken measures to prevent short-term production disruptions."
Ethylene is a basic feedstock for producing petrochemical products, made by cracking naphtha, a crude oil byproduct, at high temperature and pressure. Ethylene is used as a raw material in upstream industries such as shipbuilding, automobiles, construction, and electronics. As the war disrupted crude oil and naphtha supplies, the supply of ethylene has also entered an emergency.
The government also said it is supporting the securing of alternative import sources for naphtha through overseas missions and trade offices. It is also reportedly discussing with the industry and relevant ministries ways to support various incidental expense incurred when importing naphtha.
The Ministry of Trade and Industry (MOTI) said, "We plan to swiftly push ahead with efforts to stabilize the domestic supply chain, including restrictions on naphtha exports," adding, "In consultation with the chemical industry, we will support the supply chains of upstream industries such as shipbuilding and automobiles to prevent disruptions."