Ministry of Economic Affairs: Formosa Plastics to Increase Polyethylene Output by 5,000 Tons for Shipment Tomorrow, Expected to Ease Plastic Bag Shortage
Taiwan's Ministry of Economic Affairs announced that Formosa Plastics will increase polyethylene production by 5,000 tons, with shipments starting tomorrow, to alleviate the plastic bag shortage. CPC Corporation, Taiwan, has a tanker loaded with 2 million barrels of crude oil expected to arrive within two weeks, covering over half a month of domestic demand. The Ministry has implemented five measures, including increasing raw material supply and accelerating production, to stabilize petrochemical material supply.
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- 📰 Published: April 9, 2026 at 11:11
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Polyethylene (PE) is a thermoplastic raw material for plastics. Low-density polyethylene (LDPE), made from polyethylene, is often used to produce film products due to its lower density and strength. Plastic bags made from it are softer and commonly used for plastic bags and plastic sheets.
He further pointed out that CPC Corporation, Taiwan, has a tanker loaded with approximately 2 million barrels of crude oil in the Persian Gulf. If it can successfully arrive within the next two weeks, it is estimated to cover over half a month of domestic demand.
The Legislative Yuan's Economic Committee today invited Minister of Economic Affairs Kung Ming-hsin to report on "Assessment, Response Strategies, and Current Situation of Issues such as Increased Market Uncertainty Due to Intensified Middle East Conflict, Leading to Rising Costs of Petrochemical Raw Materials like Ethylene, Plastics, Fertilizers, Asphalt, and Logistics, and Frequent Reports of Material Shortages and Hoarding." He also faced interpellation.
Kung Ming-hsin stated in an interview before the meeting that the Executive Yuan had convened a price stabilization task force meeting yesterday to review recent price trends. Overall, the CPI annual growth rate in March was only 1.2%, lower than initially expected, indicating that overall price trends remain stable.
However, Kung Ming-hsin noted that due to the international situation, some petrochemical raw materials and downstream products, such as plastic bags, have indeed experienced localized shortages. The Ministry of Economic Affairs has proposed five major response measures, including increasing raw material supply upstream, assisting manufacturing acceleration midstream, strengthening distribution at the channel end, and establishing an inter-ministerial and local government reporting platform for timely reflection and allocation in case of shortages.
In addition, the Ministry of Economic Affairs and the Ministry of Justice have established a joint inspection team to prevent improper behaviors such as hoarding or price gouging in the market, thereby maintaining market order.
Regarding raw material sources, Kung Ming-hsin pointed out that CPC Corporation, Taiwan, has a tanker with approximately 2 million barrels of crude oil loaded in the Persian Gulf. If it can smoothly pass through the Strait of Hormuz and arrive in Taiwan within the next two weeks, based on domestic daily crude oil consumption of about 150,000 barrels, this batch of raw materials can additionally cover over half a month of demand, further stabilizing supply.
Kung Ming-hsin stated that current asphalt inventory can cover demand until the end of May, with no supply concerns. Formosa Plastics has also activated international allocation mechanisms, and the overall petrochemical supply situation is gradually improving.
The special report provided by the Ministry of Economic Affairs today stated that the domestic asphalt producers are CPC Corporation, Taiwan, and China Plastics Corporation. Current inventory is about 42,000 tons, which, based on a monthly supply of 15,000 tons, is expected to last until the end of May. Formosa Petrochemical plans to import asphalt-based crude oil in June to increase asphalt production, and currently supplies China Plastics Corporation normally. CPC Corporation, Taiwan, will also continue to seek opportunities to import asphalt-based crude oil or spot asphalt to increase overall supply. (Editor: Pan Yi-ching) 1150409
He further pointed out that CPC Corporation, Taiwan, has a tanker loaded with approximately 2 million barrels of crude oil in the Persian Gulf. If it can successfully arrive within the next two weeks, it is estimated to cover over half a month of domestic demand.
The Legislative Yuan's Economic Committee today invited Minister of Economic Affairs Kung Ming-hsin to report on "Assessment, Response Strategies, and Current Situation of Issues such as Increased Market Uncertainty Due to Intensified Middle East Conflict, Leading to Rising Costs of Petrochemical Raw Materials like Ethylene, Plastics, Fertilizers, Asphalt, and Logistics, and Frequent Reports of Material Shortages and Hoarding." He also faced interpellation.
Kung Ming-hsin stated in an interview before the meeting that the Executive Yuan had convened a price stabilization task force meeting yesterday to review recent price trends. Overall, the CPI annual growth rate in March was only 1.2%, lower than initially expected, indicating that overall price trends remain stable.
However, Kung Ming-hsin noted that due to the international situation, some petrochemical raw materials and downstream products, such as plastic bags, have indeed experienced localized shortages. The Ministry of Economic Affairs has proposed five major response measures, including increasing raw material supply upstream, assisting manufacturing acceleration midstream, strengthening distribution at the channel end, and establishing an inter-ministerial and local government reporting platform for timely reflection and allocation in case of shortages.
In addition, the Ministry of Economic Affairs and the Ministry of Justice have established a joint inspection team to prevent improper behaviors such as hoarding or price gouging in the market, thereby maintaining market order.
Regarding raw material sources, Kung Ming-hsin pointed out that CPC Corporation, Taiwan, has a tanker with approximately 2 million barrels of crude oil loaded in the Persian Gulf. If it can smoothly pass through the Strait of Hormuz and arrive in Taiwan within the next two weeks, based on domestic daily crude oil consumption of about 150,000 barrels, this batch of raw materials can additionally cover over half a month of demand, further stabilizing supply.
Kung Ming-hsin stated that current asphalt inventory can cover demand until the end of May, with no supply concerns. Formosa Plastics has also activated international allocation mechanisms, and the overall petrochemical supply situation is gradually improving.
The special report provided by the Ministry of Economic Affairs today stated that the domestic asphalt producers are CPC Corporation, Taiwan, and China Plastics Corporation. Current inventory is about 42,000 tons, which, based on a monthly supply of 15,000 tons, is expected to last until the end of May. Formosa Petrochemical plans to import asphalt-based crude oil in June to increase asphalt production, and currently supplies China Plastics Corporation normally. CPC Corporation, Taiwan, will also continue to seek opportunities to import asphalt-based crude oil or spot asphalt to increase overall supply. (Editor: Pan Yi-ching) 1150409