Taiwan's six light stoppage strikes Asian petrochemical product prices

According to foreign media reports, the No. 6 light oil cracking plant under the Formosa Plastics Group was ordered by the Executive Yuan of Taiwan to completely stop overhaul due to seven explosions and fire accidents in one year. Taiwan Six Lights is an important production link in the Asian petrochemical industry. Analysts pointed out that the six light stoppages will lead to a shortage crisis in Asia's plastics industry, which may affect the quotations of Asian plastic products.


Taiwan’s state-run China National Petroleum Corporation pointed out that since August, a total of more than 6 million metric tons of light oil cracking plants in Asia had to be overhauled on an annual basis, and Formosa Plastics Group’s six major suspensions had already cast a shock on the plastics market. Stimulate relevant raw materials to set off prices.


Taiwan’s “Six Lights” is not just a factory. It is a major city in the petrochemical industry in Taiwan. It is located in McIntwood Township, Yunlin County, where land reclamation was performed. There are 19 petrochemical related companies in the region, 66 The total output value of the factory last year reached NT$1,200 billion, but seven consecutive explosions or fires occurred, and the Taiwan government had to stop work.


Taisu Petrochemical Company, one of the six largest companies in the company, pointed out that the shutdown of the ethylene plant will have little impact on the Asian region. However, if two factories producing propylene are to be shut down at the same time, they will have a great impact on the prices of propylene in Asia. Once the downtime is extended, the company may also close down. As the shutdown of this refinery may affect the supply of gasoline and diesel in Taiwan, the Taiwan Executive Yuan is closely watching the response.


After Taiwan’s Executive Yuan issued a stop-work order the day before, the shares of Formosa Plastics, South Asia, Taiwan Chemicals, and Formosa Plastics Co., Ltd.’s four companies’ shares fell to an all-time limit, evaporating NT$390 billion in market capitalization. Taiwan’s plastics shares tumbled. 5.7%. The Taiwan Industry Bureau pointed out that the seven consecutive fires may be related to the cost savings caused by the construction of Six Lights, causing corrosion of the pipelines. The Formosa Plastics Group has promised to allocate 12 billion yuan to improve the overall length of the factory area by more than 3,000 kilometers. Pipeline.

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