Formosa Plastics Group's 'Four Treasures' April Shipments Down, Prices Up; Combined Revenue NT$139.6 Billion, Up 26% YoY

(Central News Agency reporter Tseng Jen-kai, Taipei 7th) The US-Iran conflict has disrupted global petrochemical supply chains. Formosa Plastics Group's 'Four Treasures' today announced their April performance, with product shipments all showing 'volume down, price up.' The combined revenue of the four major companies in April was NT$139.63 billion, a 1.4% decrease month-on-month, but a significant 26.2% increase compared to the same period last year.

For the first four months of this year, the combined revenue of the Formosa Plastics Group's 'Four Treasures' totaled NT$493.952 billion, a 3.9% increase year-on-year.

Formosa Plastics today announced April revenue of NT$18.326 billion, a 5.6% increase month-on-month and a 13.3% increase year-on-year.

Formosa Plastics stated that as the US-Iran conflict continues, crude oil and naphtha prices have risen, driving up the contract prices of ethylene and propylene by 23% in April compared to March. This pushed up the prices of various downstream petrochemical products, with Formosa Plastics' main product average prices all increasing by 20% to 55% compared to March.

However, due to the blockade of the Strait of Hormuz, crude oil and naphtha supply was interrupted. Domestic CPC Corporation and Formosa Petrochemical's raw material supply was discounted, leading to reduced production of Formosa Plastics' various products, with priority given to satisfying the needs of domestic downstream processing customers.

Nan Ya Plastics' April revenue was NT$27.681 billion, a 1.9% increase month-on-month and a 19.4% increase year-on-year, reaching a new high in nearly 45 months.

Nan Ya Plastics stated that recent continuous tensions in the Middle East have severely impacted petrochemical raw material supply, causing drastic price fluctuations and tight shipping schedules. This has led to rapidly increasing pressure on product quotations, order intake, and production and sales allocation, resulting in a 'volume down, price up' situation for most products.

However, demand for Nan Ya's electronic materials products was strong, boosting performance; the Texas EG (ethylene glycol) plant also operated at full capacity under favorable conditions of widening profit margins and ample raw material supply, contributing to revenue; and the South Carolina polyester plant saw increased orders due to US customers replacing imports with domestic procurement, coupled with the peak season for bottle-grade PET, which expanded the price increase, jointly driving Nan Ya's April revenue growth.

Formosa Chemicals & Fibre's April revenue was NT$32.101 billion, a 4.8% decrease month-on-month and a 28.2% increase year-on-year.

Formosa Chemicals & Fibre stated that the month-on-month decrease in April revenue was mainly due to the annual maintenance of its ARO-3 (Aromatic Hydrocarbon Plant 3), which reduced sales volume. In terms of selling prices, affected by the ongoing military conflict in the Middle East and the continued blockade of the Strait of Hormuz, crude oil prices remained high, driving up the prices of petrochemical and plastic products.

Formosa Petrochemical's April revenue was NT$61.522 billion, a 2.8% decrease month-on-month and a 33% increase year-on-year.

Formosa Petrochemical stated that the month-on-month decrease in April revenue was mainly due to the full-month scheduled inspection of the second atmospheric distillation unit (CDU#2) and delays in crude oil delivery from the Middle East due to the US-Iran conflict. Total product sales volume in April was 9.292 million barrels, a significant decrease of 3.09 million barrels compared to March.

In terms of selling prices, despite the easing of US-Iran tensions, the average price of Dubai crude oil in April was US$105.7 per barrel, a decrease of US$22.8 per barrel from March. However, due to the delayed effect of the Strait of Hormuz blockade, some refineries in Asia and the Middle East were forced to reduce production, leading to a rapid contraction in refined product supply, which pushed up spot prices of refined products. As a result, Formosa Petrochemical's average price for all products in April increased by US$35.2 per barrel compared to March. (Editor: Yang Lan-hsuan) 1150507

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