China's Wanhua Chemical Declares force majeure on Middle East shipments

Chinese petrochemicals firm Wanhua Chemical said on Monday it had invoked a force majeure on supplies to its customers in the Middle East, citing severe disruptions to shipping routes through the Strait of Hormuz that made deliveries “impossible or unreasonably dangerous.”

The legal measure, which exempts the company from contractual obligations under extraordinary circumstances, came into effect on March 7, according to an official letter sent to clients and seen by Reuters.

Wanhua is a major supplier of isocyanates, a key material used in polyurethane production for furniture, furnishings, and automotive interior components, raising the risk of supply chain disruptions for these manufacturing sectors in the Middle East.