Lotte Chemical to temporarily cut product prices for small-business customers

Lotte Chemical said Friday it plans to temporarily lower supply prices on key products to ease cost burdens on small and medium-sized enterprise customers struggling with global supply chain instability.

Lotte Daesan Petrochemical, a subsidiary spun off from Lotte Chemical, has also notified customers of supply price adjustments on major products, citing supply chain stabilization and stronger customer partnerships.

The measures draw on a 2026 naphtha supply stabilization subsidy administered by the Ministry of Trade, Industry and Energy, and are designed to cushion customers against raw material price swings in the petrochemical sector. Lotte Chemical said it will notify eligible customers in stages of the applicable products, timeframes and support details, taking into account each product's raw material input ratio, market conditions and individual customer contract terms.

Even as external uncertainties have grown, Lotte Chemical has taken a range of steps to stabilize the domestic supply chain, including redirecting export volumes to the home market and flexibly scheduling production and maintenance operations.

One notable example came in April, when the company postponed scheduled maintenance at its Yeosu plant — which holds a separate medical-grade certification — by one week to secure emergency supplies of medical-grade polypropylene used in IV bags. To prevent any production shortfall during the maintenance period, the company also made an emergency transfer of 3,900 tons of propylene from its Daesan plant to Yeosu.

"We will continue to put co-prosperity with our customers first and lead efforts to strengthen the competitiveness of domestic industry," Lotte Chemical said.

Meanwhile, other petrochemical companies are also joining the push to cut supply prices. Hanwha Solutions announced July 2 that it would reduce prices on major products by up to 250,000 won ($166) per ton.