Taiwan's hottest manufacturer stops production of

2022-08-02
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Taiwan manufacturers stop reducing the production of vinyl chloride

due to the unfavorable market conditions, Formosa Plastics and Formosa chlorine, two vinyl chloride manufacturers in Taiwan, are now in the state of shutdown and production reduction. At present, the two companies pay close attention to the effect on the market after Japanese and Korean manufacturers' recent resumption of work, so as to decide whether to start the furnace on schedule or delay

recently, the PVC market in Asia has been falling steadily, which has led to the simultaneous decline of the upstream raw material vinyl chloride (VCM), which has fallen back to the level of $500 to $510 per ton. Vinyl chloride in Taiwan has been shut down this week; Formosa Plastics Group also suspended the operation of one production line in Renwu plant, leaving only two production lines

the industry pointed out that the current spot market of ethylene in Asia has fallen from 380-390 US dollars per ton to 360-370 US dollars per ton, which will reduce the cost-effectiveness of VCM plants. However, the price of dichloroethane, another main raw material, is still at the high level of US $400 to US $430 per ton. Under the condition that PetroChina reduces the supply of ethylene, the two plants will stop production or reduce production

although the two plants have respectively scheduled the start-up time, they still hold a wait-and-see attitude. The operators pointed out that the two enterprises mainly consider the Japanese and Korean manufacturers who gave detailed lectures to customers before the shutdown and annual repair and sales, and plan to resume work and production before the end of June

for Taiwan chlorine, according to the previous plan, the plant is scheduled to resume work on July 10; For Formosa Plastics, the production line is scheduled to resume at the end of June. However, it will be operated at full capacity only after 60% of the production capacity is started and the market improves

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