MOEA Implements Four Major Measures to Stabilize Supplies of Helium, Petrochemical Raw Materials, and Downstream Products
Minister of Economic Affairs Kung Ming-Hsin chaired a meeting on March 23 regarding "Impacts of the Middle East Conflict on Domestic Petrochemical Raw Materials and Downstream Products." The meeting convened relevant agencies, including the Administration for Industrial Development, the Energy Administration, the Department of Commerce, and the CPC Corporation, to discuss countermeasures. Minister Kung noted that recent instability in the Middle East has raised concerns among Taiwan's industries regarding the supply and price volatility of helium - essential for semiconductor manufacturing - as well as petrochemical raw materials and downstream products. Consequently, the Ministry of Economic Affairs (MOEA) has launched monitoring and response mechanisms for supplies of essential products. At this stage, the core objectives are to "prioritize the stabilization of domestic supplies and mitigate impacts on industries." The Minister urged the public and businesses to remain confident.
Regarding helium supplies, imports previously relied heavily on Qatar as the source due to price factors. Following confirmation with Taiwan's three major gas suppliers, alternative imports from the United States are currently available, thus ensuring a sufficient supply overall. Furthermore, drawing on the experience of the helium shortage in 2021, major domestic semiconductor manufacturers had already established recycling systems, which has helped to enhance supply resilience.
Regarding petrochemical raw materials (e.g., methanol, polyethylene (PE), and polypropylene (PP)) that are primarily imported from the Middle East, the MOEA is actively assisting industries in expanding alternative sources of imports to diversify risks. Additionally, the MOEA will conduct an inventory of the surplus stocks of domestic manufacturers and coordinate inter-enterprise assistance as needed. As for downstream consumer plastic products, the current inventory of retail channels is sufficient and supplies remain normal.
For certain plastic packaging manufacturers (such as those producing plastic bags, films, and containers) that had previously reduced production due to market factors, the MOEA has confirmed that their production capacity is intact and will assist in resuming production at any time based on market demand to ensure supply chain stability for consumers.
The MOEA is prioritizing the basic operations of domestic supply chains by coordinating across agencies, cooperating with industries, and imposing real-time response measures to ensure stable supplies and reasonable pricing of key raw materials. The following measures will continue to be implemented to mitigate impacts on the petrochemical and downstream industries:
1. Coordinating with Major Petrochemical Plants to Prioritize Domestic Demand: This coordination is to prioritize the domestic market and strive to meet the needs of small and medium-sized enterprises (SMEs) and downstream consumer demand, thereby reducing the impact of international supply fluctuations on domestic supply chains.
2. Urging Enterprises to Reasonably Reflect Costs: For products manufactured using existing contract prices or existing raw material inventories, enterprises are urged to supply markets at reasonable prices and refrain from raising prices due to speculations in order to maintain the stability of domestic prices.
3. Strictly Preventing Malicious Hoarding and Price Gouging: Upstream manufacturers are urged to supervise their downstream wholesalers to ensure there are no abnormal procurements, hoarding, or shipping delays. The MOEA calls on enterprises to practice rational procurements to maintain market order and stabilize consumer prices.
4. Tracking the Situation and Coordinating Supplies of Materials: The MOEA will continue to maintain close contact with industry stakeholders. Manufacturers who face shortages despite previously having stable sources of petrochemical raw materials can seek assistance through the MOEA's dedicated matchmaking hotline (02-2701-1669, ext.105~107).
Spokesperson: Mr. Yu-Hsin Chou, Deputy Director General, Industrial Development Administration
Tel: 886-2-27541255 ext.2902/886-910-316969
Email: ystzou3@ida.gov.tw
Contact Organization: Consumer Chemical Industries Division, Industrial Development Administration, (MOEA)
Contact Person: Mr. Ku-Sung Weng, Director
Tel: 886-2-27541255 ext.2301
Email: ksweng@ida.gov.tw
