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Petrochemical Stocks Plunge as Market Sentiment Shifts
Energy Minerals · Oil Refining/Marketing · economic_daily · 2026-10-15
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Following a sharp decline in the Philadelphia Semiconductor Index, Taiwan's petrochemical sector saw a massive sell-off, with Nan Ya Plastics and Formosa Chemicals & Fibre hitting limit-down.
What Happened
Market Volatility: Taiwan stocks plummeted over 1,300 points on the 15th, driven by a 4.3% drop in the Philadelphia Semiconductor Index. The petrochemical sector, which saw strong gains previously, faced heavy selling pressure, leading to limit-down finishes for Nan Ya and FCFC.
Earnings Performance: The Formosa Plastics Group reported a strong third quarter with a combined net profit of NT$76.28 billion, a year-on-year increase of over 4.8 times. Nan Ya and Formosa Petrochemical were the primary drivers of this growth, benefiting from electronic materials and improved refining margins, respectively.
Operational Updates: Nan Ya achieved record-high quarterly profits, with electronic materials now accounting for 58.1% of its revenue. Meanwhile, Formosa Petrochemical expects refining margins to remain robust in the fourth quarter due to seasonal maintenance and increased demand for heating oil in Europe and the US.
Sector Outlook: Analysts remain focused on the supply-demand dynamics of the petrochemical industry. Despite the current market correction, expectations for sustained diesel spreads and geopolitical support for oil prices suggest a resilient outlook for the group's refining operations through the end of the year.