Formosa Plastics Corp., the world's second-largest maker of PVC, posted its biggest profit in three quarters as increased demand from China mainland boosted product prices.

Net income rose 35 percent to NT$7.75 billion (US$236 million) in the tree months ended June 30, from NT$5.75 billion a year earlier. That's more than the median estimate of NT$6.7 billion. The numbers were derived from six- month earnings the Taipei-based company and confirmed by Formosa Plastics spokesman Jerry Lin.

China mainland, Taiwan's biggest export market, bought more of Formosa Plastics' products to make toys, handbags and shoes in the second quarter as the mainland economy grew 11.3 percent from a year earlier. About a third of the company's sales are to China.

PVC prices have been quite strong and the mainland is lifting demand for commodities including PVC.

Prices of polyvinyl chloride, or PVC, climbed 12 percent in East Asia during the second quarter.

PVC, 40 percent of which is used to make consumer products such as handbags, accounted for a fifth of Formosa Plastics' sales for the April-June period. The material is the company's biggest-single revenue source.

The company is the world's biggest maker of PVC after Shin-Etsu Chemical Co. of Japan.

Source:佚名