Severe Damage to Middle East Energy Facilities Poses Serious Challenges to Global Petrochemical Supply Chains
— Customer Letter: Current Market Situation and Our Supply Assurance Commitment

Dear Valued Customer,

Recent severe geopolitical conflicts in the Middle East have resulted in damage to over 60 energy facilities in the Gulf region, including refineries, oil storage tanks, and petrochemical plants, due to missile and drone attacks. This is profoundly impacting global energy and chemical raw material supply chains.

Impact on our industry:

• Raw material costs: Prices of PTA and MEG have risen by nearly 30%, with further upward pressure.

• Lead times: Major Middle Eastern suppliers are facing shipment delays, and some shipping lines have announced war risk surcharges.

• Alternative demand: Many customers who previously relied on Middle Eastern sources are urgently turning to stable Asian suppliers.

✅ Our response and commitment
Facing this sudden situation, we have activated contingency plans to ensure your orders are not affected:

• Sufficient safety stock
  We have established a 2–3 month buffer stock of core raw materials at major domestic ports, covering existing customer orders. Even if Middle Eastern supply is interrupted, we can still ship as normal.

• Diversified procurement network
  Beyond the Middle East, we have backup sources from Southeast Asia, the Americas, and high-quality domestic suppliers. We have already switched some orders to stable sources to keep prices and lead times relatively可控.

• Flexible logistics solutions
  We work closely with multiple shipping lines and can choose alternative routes (e.g., via the Cape of Good Hope or the China-Europe Railway) based on real-time conditions. Urgent orders can be arranged by air freight to minimize delays.

• Transparent communication
  For all active orders, we will provide daily shipping status updates. If any potential supply risk arises, we will notify you at least 7 days in advance and work together on alternative solutions.