TAIPEI (Taiwan News) — Economics Minister Kung Ming-hsin (龔明鑫) said the ministry will cooperate with major domestic petrochemical companies to secure a stable supply amid the war in Iran to try to reduce the impact on downstream industries, CNA reported.
Most plastics are made from petrochemical feedstocks. Light oil is processed through steam cracking to produce basic materials, which are then turned into plastic pellets. Manufacturers use these pellets to produce a wide range of plastic products.
At a Legislative Yuan session on Wednesday, KMT Legislator Chen Chao-ming (陳超明) said some plastic product makers are unable to secure raw materials, while others face uncertainty over delivery schedules from upstream suppliers.
DPP Legislator Tsai Yi-yu (蔡易餘) said some farmers are struggling to obtain plastic packaging for agricultural products, with prices rising in some cases. He called on the ministry to launch an investigation to prevent hoarding and price manipulation.
Industrial Development Administration Director Chiu Chiu-hui (邱求慧) said the agency has coordinated with domestic petrochemical firms to prioritize local supply and halt exports. He warned businesses against hoarding or raising plastic prices, noting such practices could disrupt the market.
Health Minister Shih Chung-liang (石崇良) said the ministry will also expand supply monitoring and work with the economic ministry to coordinate with suppliers, ensuring a stable plastic supply for medical and pharmaceutical packaging.
Taiwan College of Healthcare Executives Chair Hung Tzu-jen (洪子仁) noted some medical supplies have seen price increases of up to 20%, and some international suppliers have suspended orders or delayed deliveries. Shih added that the government plans to allocate a budget to secure medical supplies if material costs continue to rise.
Formosa Plastics, a major supplier of petrochemical feedstocks in Taiwan, said its material supply is stable through April but could face changes afterward. The company pledged to prioritize domestic downstream customers, though prices may increase.
Company President Lin Sheng-Kuan (林勝冠) said crude oil prices are currently unpredictable, as the international supply remains uncertain due to the conflict. He added that this makes pricing for midstream and downstream customers challenging.
