World's number two PVC maker - Formosa Plastics Corp has posted a record quarterly profit on robust demand from China that has aided stronger prices. Net income surged 65% to NT$20.1 bln (US$619 mln) for Q3 ended Sept. 30, up from NT$12.2 bln a year earlier.
China buys almost 33% of Formosa Plastics' products. A booming Chinese economy, growing at 11.5% has helped push up demand for PVC, used in construction, luggage, shoes and toys industry. Average prices of PVC in East Asia climbed 12% in the quarter, from a year ago levels. Third-quarter sales increased 23% from a year ago levels to NT$48.2 bln.
Profit from chemicals has increased since Formosa Petrochemical started production at its No. 3 ethylene plant in May, boosting the refiner's annual capacity by 1.2 mln tons to 2.94 mln tons.