Formosa Chemicals & Fibre Corp (FCFC) is preparing to halt operations at its No.2 Paraxylene (PX) unit in Mailiao, Taiwan, as part of scheduled maintenance. A source in Taiwan confirmed that the shutdown is expected to take place in October 2025, though the precise start date and the duration of the turnaround have not yet been disclosed.
The No.2 PX unit, with an annual production capacity of 700,000 mt, is a significant contributor to regional paraxylene supply. The upcoming closure is expected to temporarily tighten availability in Northeast Asia, particularly as paraxylene serves as a critical feedstock for purified terephthalic acid (PTA) production, which in turn is a cornerstone of the polyester and textile industries.
Industry participants note that the maintenance could coincide with a seasonal uptick in downstream demand, amplifying its impact on market sentiment. Polyester producers in China, the world’s largest PX importer, are closely monitoring the development, as any prolonged outage at the Mailiao facility could place upward pressure on spot prices.
The timing of the shutdown also comes against a backdrop of relative volatility in crude oil and naphtha markets, factors that heavily influence PX pricing. Traders suggest that while regional supply remains adequate for now, the absence of a large Taiwanese unit could reduce flexibility in meeting sudden demand spikes, particularly if other producers in the region face unplanned outages.
Market observers believe FCFC’s decision to move forward with the maintenance reflects both operational necessity and strategic planning, ensuring long-term reliability of the unit in a competitive global market. However, buyers and sellers alike will be watching for confirmation of the duration, as the length of downtime will determine how significant the supply impact may be across Asia’s PX chain.
With Taiwan playing a pivotal role in the Asian paraxylene trade, the Mailiao shutdown will be a critical development shaping regional dynamics in the fourth quarter of 2025.
