Saudi Basic Industries Corporation (SABIC) has declared force majeure on its styrene monomer and methanol product lines, according to a report by Cailian Press on the afternoon of March 27.
As a critical pillar of global methanol supply, SABIC operates the world’s largest single-site methanol production facility in Jubail, Saudi Arabia, with an annual capacity of 4.7 million tons. The company also possesses substantial styrene production capacity, totaling approximately 1.8 million tons per year. The simultaneous disruption of these two core products has rapidly widened supply gaps in both global methanol and styrene markets.
Systemic supply crisis across the Middle East
Notably, the force majeure events are spreading systematically across the Middle East, with impacts extending far beyond methanol and styrene. Polyethylene, polypropylene, ethylene glycol, urea, and even basic chemical raw materials such as LNG and sulfur are all facing supply interruptions or extreme tightness, bringing regional supply chains nearly to a standstill.
A report from Morgan Stanley indicated that the ongoing production outages in the Middle East have triggered cascading force majeure events globally, affecting chemical companies across Asia and Europe.
Market response
The market has reacted swiftly. As of 15:00 on March 27, the price of the main styrene futures contract had risen to RMB 10,431 per ton, a single-day increase of 5.93%.
Outlook and risks
Industry analysts warn that if the situation in the Middle East does not ease in the short term and production halts continue to escalate, the supply-demand gap for global chemical raw materials will widen further, intensifying upward pressure on prices and making declines unlikely. Downstream industries such as plastics, coatings, fertilizers, automotive, and home appliances will face the dual challenge of soaring costs and raw material shortages. Some sectors may be forced to reduce or halt production due to supply cutoffs, triggering broader ripple effects across the global economy.
