Taiwan’s Formosa may cut PP allocations on feedstock shortage

02 August 2011 05:46  [Source: ICIS news]

SINGAPORE (ICIS)--Taiwan’s Formosa group may have to cut its polypropylene (PP) allocations by 50-80% if its on-site propylene feedstock shortage is not resolved soon, the major producer’s buyers said on Tuesday.

Formosa is experiencing an acute on-site shortage of propylene in the aftermath of the pipeline fire at its complex in Mailiao, Taiwan, over the weekend.

As a result of the feedstock shortage, Formosa may have to cut or stop production at its PP plants in Mailiao, Taiwan, and at Ningbo in China’s Zhejiang province, the buyers said.

Formosa Chemical & Fibres Corp (FCFC), which operates three 180,000 tonne/year PP plants at Mailiao, may be able to meet only 50% the supply it has committed to buyers in China for July shipment because of the feedstock shortage, a buyer in eastern China said.

Formosa Polypropylene (Ningbo), which runs a 350,000 tonne/year PP facility in Ningbo, China, may have to cut its allocations for the domestic market by up to 80% in August, September and October, a second buyer in eastern China said.

Officials from Formosa were not immediately available to comment.

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By: Chow Bee Lin
+65 6780 4359



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