Korea Petrochemical Industry Co (KPIC) is reported to be planning a significant maintenance turnaround of its cracker at Onsan in the fourth quarter of 2026, according to a source in South Korea. While the shutdown schedule is tentative and both the date and duration are yet unconfirmed, market watchers are already bracing for the impact.
The Onsan cracker is no small operation. Its annual production capacity includes 900,000 metric tons of ethylene and 460,000 metric tons of propylene, two of the foundational olefins for many downstream polymers and chemical products. With output like that offline, even temporarily, ripple effects across supply chains could emerge, affecting propylene supply, polypropylene production, and related pricing dynamics.
This news comes amid broader pressure on South Korean petrochemical operators to restructure and reduce capacity. Government policies are pushing operators to cut back naphtha‐feeding cracker capacities and improve efficiency, as margins remain under strain in the face of global oversupply and intensifying competition. Sources suggest that KPIC is aligning with these industry trends, and the possible Onsan shutdown could be part of a broader rationalization effort.
In sum, while the full picture isn’t yet clear, a major disruption at Onsan in late 2026 could reverberate through supply lines for olefins, polymers, and more. The industry will be watching closely.
