Plastic supplies to remain sufficient amid oil concerns: MOEA

Taipei, April 6 (CNA) Supplies of plastic products, including plastic bags and medical items, remain stable despite rising oil prices, and state-run oil company CPC Corp., Taiwan will increase production to fill any gaps, the Ministry of Economic Affairs (MOEA) said Monday.

An MOEA official made the announcement at a press briefing on potential shortages of plastic items and higher prices caused by the war against Iran and subsequent closing of the Strait of Hormuz, through which about 20 percent of the world's oil and liquefied natural gas passes.

It came after the MOEA said Saturday that inventory checks across 350 shopping districts around Taiwan had found plastic bag shortages in 42 districts and in 284 of 1,033 markets.

On Monday, the MOEA urged consumers and businesses not to panic-buy plastic products and promised that CPC would boost production to ease fears of shortages.

It said CPC's fourth naphtha cracker plant will raise ethylene output by 19,000 metric tons in April, including 5,500 tons allocated to polyethylene (PE) production.

Twenty plastics processors will convert that polyethylene into about 5,000 metric tons of plastic bags, equal to about 1.25 billion 0.6-liter bags, National Development Council chief Yeh Chun-hsien (葉俊顯) said.

CPC is expected to further increase ethylene production by 11,000 tons in May, bringing the total increase to 30,000 tons, Yeh said.

Deputy Economic Affairs Minister Ho Chin-tsang (何晉滄) said monthly domestic demand for PE is about 22,000 tons, indicating that supplies of plastic bags and other essential items will remain sufficient, and Ho urged people not to engage in panic buying.

On energy supplies, Yeh said current oil and natural gas reserves remain above regulatory requirements. CPC and privately-owned Formosa Petrochemical Corp. have also increased purchases of crude oil and naphtha, with shipments passing through the Red Sea.

Meanwhile, liquefied natural gas shipments for April and May have been secured, along with 11 of the 15 vessels needed for June, he said.