Taiwan Tops South Korea's Naphtha Imports
It was found that Taiwanese naphtha accounted for the largest share of South Korea’s naphtha imports last month. It is considered unusual to import the largest amount of naphtha from Taiwan, which is not an oil-producing country like those in the Middle East or North Africa. This is the result of Ta
The report highlights that Taiwan has become the largest source of naphtha imports for South Korea, surpassing traditional oil-producing countries like Kuwait, the UAE, and Algeria. This shift is attributed to Taiwanese petrochemical companies reducing the operation rates of their naphtha cracking centers due to oversupply from China.
The Korean government is urged to definitively restructure the domestic petrochemical industrial complexes. The surge in Taiwanese naphtha imports, which began in July, is primarily driven by LG Chem, Lotte Chemical, and others. The situation reflects the challenges faced by Taiwan's petrochemical industry, similar to those in South Korea, following the Middle East war and a subsequent 'vinyl crisis'.
However, the industry is finding stability through diversification and renewable energy policies. The low-priced Chinese products have re-entered the market, causing Taiwanese firms to lower their NCC operation rates, leading to the export of naphtha to countries like South Korea. This 'bargain sale' could provide benefits for the domestic petrochemical industry, taking advantage of the lower costs and suitable grade for their needs.
Brief written by urgent.news from BusinessKorea's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
