Recently, Formosa Petrochemical has adjusted operating schedules for its two core naphtha cracking units. The No.3 unit (1.2 MMT/Y) is scheduled to restart at end‑August, while the No.2 unit (1.035 MMT/Y) is set for shutdown maintenance before end‑September. With a combined ethylene capacity of over 2.2 million metric tons per annum, the one‑on‑one‑off operation will directly shift supply‑demand dynamics in Asia’s ethylene market. The restart of Unit 3 will bring temporary supply growth, whereas the shutdown of Unit 2 will tighten supply early in the fourth quarter.
Affected by scheduled annual maintenance on Unit 3, Formosa Petrochemical’s cracking units operated at an average utilization rate of only 40% in Q3 this year. Market analysts note that as Asia’s major ethylene supplier, Formosa Plastics’ unit restart will ease tight ethylene supply in Asia in the short term. Yet subsequent maintenance will revive supply‑tightening expectations. Ethylene prices are unlikely to trend unilaterally and are expected to fluctuate within a range.
For downstream products including polyethylene, styrene monomer and ethylene oxide, the staggered unit‑operation timeline will cause volatility in raw‑material arrival schedules. Downstream manufacturers need to strike a balance between the low‑inventory phase prior to Unit 3 restart and the stocking window ahead of Unit 2 shutdown.
For China’s plastics sector, Formosa Plastics’ ethylene‑unit on‑off cycles will directly affect import‑arrival outlooks and cost volatility for PE, styrene monomer and other feedstocks. Relevant enterprises are advised to closely monitor unit developments and raw‑material procurement timing from September to October.
China’s domestic energy‑chemical market posted mixed price movements today. Propylene rose 1.96%, polypropylene climbed 0.97%, styrene monomer gained 0.40%, and staple fiber edged up 0.29%. By contrast, benzene, general plastics, PET bottle flakes, PVC and crude oil slipped to varying degrees.
Spot markets also showed mixed performance. ABS spot trades were muted in the morning, before improved spot transactions in the afternoon driven by higher butadiene feedstock costs and producer‑listed price hikes:
- Sinopec East China lifted ABS prices by RMB 100‑200/MT
- Zhenjiang Chi Mei raised ABS prices by RMB 300‑500/MT
- LG Chem (Huizhou) lifted ABS offer prices by RMB 300/MT
- Ningbo LG Yongxing hiked ABS prices by RMB 300/MT
- Rongsheng Petrochemical increased ABS prices by RMB 500/MT this week
Some domestic PC producers continued price‑defending efforts backed by supply‑side support. Nonetheless, downstream end‑user demand remained sluggish, leading to modest declines in PC spot prices.
Post time: Aug-25-2026