Chemical Supply Recovery and Market Outlook post Middle East Shock
September 22, 2026, Tuesday | 2:00 pm SGT, GMT+8 | 1 hour
The closure of the Strait of Hormuz in early March triggered one of the most significant petrochemical market disruptions in recent history. A market already burdened by oversupply, weak demand, and compressed margins shifted abruptly to feedstock shortages, sharp price increases, and demand destruction. Disruptions across crude oil, chemical feedstocks, base chemicals, and plastics reshaped trade flows, regional cost competitiveness, inventories, pricing, and operating rates.
The 60-day US-Iran ceasefire agreement, after persistent ceasefire violations by both sides, has expired without a broader political settlement, and commercial transit through the Strait remains severely constrained. Although peak concerns over oil availability have eased, the recovery in petrochemical markets remains fragile and uneven. Persistent security risks, elevated freight costs, inventory rebuilding, disrupted trade routes, and uncertain demand recovery continue to cloud the outlook through the remainder of 2026 and into 2027.
Join S&P Global Energy chemical market experts for a focused assessment of how the unresolved conflict is reshaping the short-term outlook for petrochemical feedstocks, olefins, aromatics, polymers, and other key derivatives. The discussion will examine regional supply-demand shifts, pricing and margin pressures, trade and freight constraints, and the likely pace of market normalization, followed by a live Q&A.
What You’ll Learn
- How the ongoing US-Iran conflict and mostly closed Strait of Hormuz is reshaping short-term crude oil and petrochemical feedstocks supplies and market volatility through the rest of the year and into 2027.
- What is the timeline for each of the key petchem markets to recover and what will the markets look like? - given the pre-war environment of oversupply, weak demand, and low prices/margins?
- How are regional dynamics shifting across North America, Europe, the Middle East, and Asia, including the roles of US ethane-based production and China’s now more diversified feedstock position?
- Are polyolefin markets likely to see further price relief, or will there be renewed price support from high freight rates, inventory rebuilding, and delayed supply-chain normalization.
- Why Northeast Asian PVC length is keeping export pressure high into South Asia, where inflation, slower economic activity, and resin-cost differentials may continue to support the shift from ethylene-based PVC to acetylene-based material.
- What’s driving benzene and why styrene markets remain exposed to margin pressures even as crude sentiment softens.
Speakers:
- Alvin Ang, Director, Asia Inorganics and Vinyls
- Kate Lee, Sr Principal Analyst, Asia Benzene& Styrene
- Shaohua Feng, Director, Asia Polymers
- Paul Joo, Director, Asia Olefins & Derivatives