Chinese chemical company Wanhua has announced a force majeure on supplies to its clients in the Middle East, a company representative said on Monday. Traders said the major petrochemical company usually sells some of its derivatives, such as isocyanates, which are a key material for polyurethane products used in furniture. According to a message sent by the company to its clients and seen by Reuters, the force majeure clause, which frees parties from their obligations in the event of exceptional circumstances, came into effect on March 7. The message read: 'We are facing severe disruptions in shipping routes through the Strait of Hormuz, making delivery impossible or extremely risky'.
