TAIPEI (Taiwan News) — Formosa Plastics Group said its subsidiaries will raise prices on most products amid a surge in global oil prices caused by the temporary closure of the Strait of Hormuz, as part of efforts to offset rising costs, Economic Daily News reported.
Formosa Chemicals & Fibre, a subsidiary of the group, said it will raise prices for petrochemical feedstocks and chemical fibers, which are derived from crude oil. The company added the Ministry of Economic Affairs is working with it to prioritize domestic supply, aiming to reduce the impact on local plastic and rubber manufacturers.
The company said a major Japanese client placed large orders for petrochemical feedstocks in March and will be given priority supply due to their long-standing partnership.
The company said output of its petrochemical feedstocks fell by nearly 50% in March. It expects supply to stabilize in April but remains uncertain about May. It highlighted it will prioritize domestic customers and overseas clients with existing contracts.
Higher oil prices may benefit petrochemical producers in the short term, the company said. However, a prolonged rise would increase production costs and weaken downstream demand, potentially reducing profits.
Formosa Petrochemical, another group subsidiary, said global crude oil prices have risen above NT$3,465 (US$110) per barrel. Prices for its main petrochemical products, including ethylene, propylene, and butadiene used in plastics, rubber, and fibers, have also increased. Polystyrene, used in plastic tableware and appliance casings, could see a price rise of up to 46% in April.
Nan Ya Plastics, another group subsidiary, said it has raised prices for glass fiber cloth, yarn, and copper foil due to higher raw material costs.
The company added that electronic materials make up more than half of its revenue, helping offset rising costs in its chemical fiber and plastics businesses. Strong demand from AI servers and advanced semiconductor packaging has further boosted its electronic materials segment.
DPP Legislator Chung Chia-pin (鍾佳濱) said the group supplies 75% of Taiwan’s plastic pellets, used in packaging, medical devices, and other products. Last year, the company halted a production line, and petrochemical feedstock output fell in March, followed by the planned price increases in April.
Chung urged the justice and economics ministries to investigate whether the company limited production to drive up prices.
