The Ministry of Economic Affairs in Taiwan announced a freeze on LPG prices for April to ease household burdens amid global petrochemical disruptions caused by the US-Iran conflict. The measure aims to stabilize the domestic supply chain and prevent price hikes.
Additionally, China Petroleum Corporation plans to start up its Four-Light plant earlier on April 1, increasing ethylene supply to 79,000 tons per month to address downstream raw material shortages. The government also established a dedicated line to facilitate raw material coordination for manufacturing industries.
Formosa Petrochemical has committed to maintaining stable LPG prices in April and ensuring continuous supply of ethylene and propylene to domestic downstream firms. The company is also exploring production and import options for butadiene to meet local demand.
CPC will keep its three aromatics plants operating stably, reducing exports and adjusting vessel schedules to prioritize raw materials like toluene and xylene for domestic use. The increased ethylene output from the Four-Light plant is expected to further support local industry.
Stocks of solvents used in coatings, printing, and cleaning are sufficient through August, with retail inventories of essential plastics already adequately stocked. The government coordinated domestic capacity to allow flexible increases in production if needed.
The Ministry emphasized close cooperation with local governments to monitor the petrochemical industry and market supply conditions. Efforts are ongoing to build resilient production systems and ensure raw material availability to stabilize the economy and consumer prices.
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