YNCC placed its No. 2 and No. 3 naphtha cracker units into long-term shutdown arrangements starting August 31, 2026, removing approximately 1.39 million tonnes per year of ethylene capacity, according to a research report. The company retained its more competitive No. 1 cracker with approximately 900,000 tonnes per year of ethylene capacity.
The No. 2 and No. 3 units were to be shut for at least three years. The move marked a shift from discussion to execution in South Korea's petrochemical de-capitalization drive, which has been driven by oversupply, weak margins and export competition. Ethylene is the starting point for polyethylene, ethylene oxide, ethylene glycol, styrene and other product chains, so the cracker exits were expected to gradually affect regional supply-demand balances for propylene, aromatics and downstream polyolefins.
