Market talks have it that Indian petrochemical producers and ports in the country are declaring a force majeure as the prime minister ordered a 21-day total lockdown starting March 25 SSESSMENTS.COM was told. The lockdown is aimed to curb the spread of Coronavirus and the Indian prime minister also stated that that there will be a total ban of movement during the lockdown. In the days to come, more disruptions at Indian petrochemical producers and local manufacturers are expected as the global coronavirus pandemic worsens by the day.
Following the lockdown, market talks have it that Haldia Petrochemical (HPL) declared force majeure and the company’s cracker unit is expected to halt production soon. To date, there is no detailed information on when the cracker unit will restart its production. While for ONGC Petrochemical Additions Limited (OPAL) and Reliance Industries, the producers have not declared any force majeure on supplies yet, SSESSMENTS.COM was told. As for MRPL, the producer is still operating but at reduced rate because of issues stemming from the lockdown.
Further informed to SSESSMENTS.COM, restrictions were already imposed at ports in the country prior to the prime minister’s announcement, requiring a 14-day quarantine for vessels coming from several countries including but not limited to China, Hong Kong, Indonesia, Iran, Italy, Japan, Macau, Singapore, South Korea, Thailand and Vietnam. At present, according to letters issued by the respective port authorities, Dhamra, Gangavaram, Gopalpur, Karaikal, Krishnapatnam, Mundra and Tuna have declared force majeure.
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