Supply Extremely Tight! LG Chem Declares Force Majeure on DOTP Export Contracts

Client letters obtained by Platts, part of S&P Global Commodity Insights, show that LG Chem Ltd. has declared force majeure on certain export contracts for di-octyl terephthalate (DOTP) for March–April shipments, effective March 6, due to severe operational disruptions at its oxo-alcohol plant caused by geopolitical tensions.

In the letter, LG Chem stated: "Recent geopolitical tensions have impacted the supply of naphtha and propylene, and our oxo-alcohol plant operations are currently facing severe disruptions. As a result, the supply of alcohols—key raw materials for plasticizer production—has become severely constrained."

"Furthermore, the supply of alcohols in the domestic market is extremely tight, making it difficult for us to secure alternative sources. Under these circumstances beyond our reasonable control, we regret to inform you that LG Chem is hereby declaring force majeure on certain plasticizer (DOTP) export contracts with immediate effect, effective until further notice."

LG Chem did not immediately respond to requests for comment.

The company did not specify which production sites would be affected by the force majeure, but sources suggest that DOTP supply from LG Chem's plant in Naju, South Jeolla Province, may be impacted.

On March 5, Platts assessed DOTP CFR China at $1,085/metric ton, up $75/metric ton week-on-week; DOTP CFR Southeast Asia rose $75/metric ton week-on-week to $1,135/metric ton.