The widening Middle East conflict has disrupted shipping through the Strait of Hormuz and prompted Formosa Chemicals & Fibre Corporation to declare force majeure, threatening cuts to styrene monomer and other petrochemical supplies from April 2026—risks that could ripple through global energy, manufacturing, and semiconductor supply chains and trade flows.
Force majeure spreads across Formosa group
Formosa Chemicals & Fibre Corporation (FCFC) said it will invoke force majeure from April due to insufficient upstream raw materials, joining sister companies Formosa Petrochemical Corporation and Formosa Plastics Corporation in doing so. The company named styrene monomer, phenol, and purified terephthalic acid among affected products, and said it will prioritize domestic sales and existing contract customers to safeguard supply.
April holds, but May hangs in the balance
FCFC expects to maintain supply throughout April without immediate disruption, but warned that continued conflict could lead to interruptions in May. The company said it is proactively informing customers and scheduling mitigation discussions, while noting that any easing of hostilities would alleviate supply pressures in April.
Rising costs squeeze downstream industries
Industry observers say petrochemical raw material prices had already been rising since the second half of 2025. The outbreak of war between the US and Iran has intensified those pressures, creating a global energy supply crisis and likely driving further increases in upstream petrochemical feedstock costs. If the conflict endures, downstream and end-product sectors—particularly consumer goods and high-tech industries—could face significant impacts from raw material shortages.
Taiwan moves to stabilize supply
The Ministry of Economic Affairs in Taiwan has launched four major measures to stabilize the supply of helium, petrochemical raw materials, and finished products. Taiwan historically imported most of its helium from Qatar, but consultations with three domestic gas suppliers have made imports from the US feasible, officials said, helping to stabilize overall supply. Many local semiconductor firms have also implemented helium recycling systems since the 2021 shortage to bolster resilience.
To reduce reliance on Middle Eastern feedstocks, the ministry is helping companies diversify methanol imports sourced from the US, Malaysia, and Brunei. It is assessing domestic inventories to enable cross-enterprise support if needed. Retail inventories of downstream consumer plastics remain sufficient, and manufacturers stand ready to resume production as market demand requires. Recycled plastics firms reported that rising crude prices have improved the competitiveness of recycled materials, prompting increased market interest and investment inquiries.
Article translated by Jingyue Hsiao and edited by Jerry Chen
