Lotte Chemical announced plans on July 10 to temporarily lower supply prices for key products to alleviate cost burdens for small and medium-sized enterprise (SME) customers facing challenges due to global supply chain instability. The initiative aims to contribute to maintaining a stable supply chain in the domestic market.
This measure will utilize the "2026 Naphtha Supply Stabilization Subsidy" overseen by the Ministry of Trade, Industry and Energy, designed to mitigate the impact of fluctuations in petrochemical raw material prices and to ensure that government support benefits the broader industry.
Lotte Chemical plans to sequentially inform customers about the applicable products, duration, and support measures, taking into account the proportion of raw materials used for each product, market conditions, and individual customer transaction terms. Lotte Daesan Petrochemical, a subsidiary of Lotte Chemical, has also notified its customers of adjustments to supply prices to strengthen supply chain stability and partnerships.
Through this price reduction, Lotte Chemical aims to solidify its partnerships with SME customers and support the stable production and supply of essential petrochemical materials used across various sectors.
Meanwhile, despite external variables, Lotte Chemical has focused on stabilizing the domestic supply chain by converting export volumes to domestic sales and flexibly managing production and maintenance schedules. In April, the company postponed routine maintenance at its Yeosu plant by one week to ensure a stable supply of medical-grade polypropylene and urgently transported 3,900 tons of propylene produced at its Daesan plant. Additionally, during a period of uncertainty in the supply of construction materials, it increased production of EOA, a raw material for concrete additives, supplying 7,000 tons, which is 140% of the average monthly domestic demand.
Lotte Chemical stated, "We will continue to prioritize cooperative relationships with our customers to enhance the competitiveness of the domestic industry."
Other major petrochemical companies, including LG Chem, SK Geocentric, Hanwha Solutions, and Hanwha TotalEnergies, are also reducing supply prices for SME customers in connection with the government's naphtha supply stabilization subsidy.
* This article has been translated by AI.
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