Photo Credit: Bangkok Post
Concerns are rising over potential raw material shortages in Thailand’s manufacturing sector after Siam Cement Group(SCC) announced a temporary suspension of its Vietnam petrochemical complex.
The move is linked to ongoing disruptions in feedstock supply caused by the prolonged closure of the Strait of Hormuz, which has tightened access to crude oil and naphtha from the Middle East.
SCC said operations at Long Son Petrochemicals (LSP) in Vietnam will be halted around mid-May 2026, with the shutdown expected to cost about 250 million baht per month. The announcement sent SCC shares down nearly 8% in morning trading.
The suspension follows an earlier shutdown of its Rayong Olefins plant in March, also linked to geopolitical tensions in the Middle East.
While other SCC operations continue as normal, analysts warn more companies could face similar disruptions in the second quarter as supply constraints persist. Competitors such as PTT Global Chemical, Indorama Ventures, and IRPCmay benefit from improved margins during the outage.
SCC said it will monitor the situation closely, while using the downtime to carry out maintenance and accelerate preparations for a planned ethane feedstock project, targeted for completion in 2027.