Market participants also indicated that the producer could suspend its offers for up to two months, although this remains unconfirmed and is currently treated as market speculation.
The expected move follows the company’s March pricing announcement, when it increased PVC K67 offers to $720/ton CIF India and China, cash, up by $40/ton from February levels. FOB Taiwan prices were set at $650/ton, cash.
Upstream disruptions raise supply concerns
The uncertainty stems from upstream disruptions after Formosa Petrochemical Corporation declared force majeure on olefins earlier in March. The company cited feedstock shortages and shipping constraints linked to disruptions in the Strait of Hormuz.
In the wake of this declaration, Formosa Plastics Corporation warned customers about possible supply disruptions, delivery delays, and allocation measures for affected products, including polyolefins and PVC.
According to a customer notice dated March 10, reduced availability of key feedstocks such as ethylene and propylene has disrupted the company’s petrochemical supply chain, preventing normal plant operations. As a result, available volumes may be distributed under a “fair quota supply” mechanism based on current inventory levels, while delivery schedules could also face revisions
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