Lotte Chemical Temporarily Lowers Major Product Supply Prices to Support SME Mutual Growth

Utilizing Government Naphtha Supply Stabilization Subsidy
Enhancing Supply Chain Stability and Easing Cost Burdens

Lotte Chemical is set to lower the supply prices for its small and medium-sized business customers, utilizing the government’s naphtha supply stabilization subsidy to ease their cost burdens.

Plastic resin pellets produced and supplied by Lotte Chemical. Lotte Chemical

On July 10, Lotte Chemical announced that it would temporarily reduce the supply prices of its major products as part of a mutual growth support initiative.

This measure is designed to alleviate client burdens arising from fluctuations in petrochemical raw material prices by leveraging the “2026 Naphtha Supply Stabilization Subsidy” promoted by the Ministry of Trade, Industry and Energy, and to spread the benefits of the government subsidy across the entire industry.

Lotte Chemical plans to sequentially provide guidance on the scope of eligible products, duration of support, and implementation methods, taking into account the input ratio of raw materials for each product, market conditions, and the specific terms of transactions with each client. The company aims to use this price reduction as an opportunity to strengthen its cooperation with small and medium-sized business customers and to contribute to the stable production and supply chain maintenance of essential petrochemical materials.

This measure goes beyond merely lowering supply prices. Whenever supply chain instability has increased due to external variables, Lotte Chemical has flexibly managed its production and logistics to help stabilize domestic supply.

For example, in April, to ensure a stable supply of medical polypropylene (PP), the company postponed the scheduled maintenance of its Yeosu plant by one week to secure emergency volumes. During the maintenance period, Lotte Chemical also urgently transported 3,900 tons of propylene produced at the Daesan plant to the Yeosu plant, allowing continuous supply without production disruptions.

When uncertainty in construction material supply increased, the company ramped up production of ethylene oxide adduct (EOA), a key raw material for concrete admixtures, supplying 7,000 tons—or about 140% of the average monthly domestic demand—thereby contributing to the stable supply of ready-mixed concrete at construction sites.

Lotte Chemical stated, “We will continue to prioritize mutually beneficial cooperation with our clients as our top value and contribute to enhancing the competitiveness of domestic industries and establishing a stable supply chain.”

Meanwhile, Lotte Daesan Petrochemical, a subsidiary established through a physical division from Lotte Chemical, has also notified its customers of supply price adjustments for major products in order to strengthen supply chain stability and customer partnerships.

This content was produced with the assistance of AI translation services.