In the aftermath of the Lunar New Year, Formosa Chemicals & Fibre has reported a robust increase in its March revenue, achieving a notable 17.12% monthly rise to NT$30.076 billion. This uptick not only indicates a significant yearly increase of 2.1% but also highlights a positive trajectory for the first quarter, with revenues reaching NT$83.941 billion, marking an annual growth of 1.1%. This performance underscores a resilient demand in the chemical sector, buoyed by post-holiday operational ramp-ups across its clientele.
Formosa Chemicals attributes this surge to the post-Lunar New Year business resurgence, with increased production across the board. The company has seen heightened sales in a broad spectrum of its products including PTA, PIA, SM, PS, ABS, and PP. This growth is further supported by an uptick in business days after the Spring Festival and a rising downstream demand, painting a picture of robust economic activity and optimism within the industry.
The company also reports a favorable market response to rising oil prices and raw material costs, which have contributed to improved downstream utilization rates and demand. This has, in turn, supported an upward adjustment in the average price of its major products compared to the previous month. Notably, SM and acetone prices have seen an increase, attributed to industry-wide load reductions and production cuts, tightening supply, and pushing market prices upward. While the market dynamics for other products have been mixed in comparison to the previous year, the overall trend indicates a positive outlook for Taiwan Chemical and potentially the broader chemical industry, driven by strong market fundamentals and adaptive supply chain strategies.
