29 November 2007 08:44 [Source: ICIS news]
SHANGHAI (ICIS news)--Sinopec has begun to reduce its polyolefins output since end-November to cater to the Chinese government's push to increase oil production, company sources said on Thursday.
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The ratio of products in a refinery could be adjusted depending on demand, the source said.
But the reduction in polyolefin output was only a temporary measure, otherwise polyolefin supply will be in shortage, a market player said.
Beijing Yanshan Petrochemical, a subsidiary of Sinopec, has cut injection grade polypropylene (PP) output at its 115,000 tonne/year unit by 30-40% from full rate, a company source said.
Output of Yanshan’s 710,000 tonne/year ethylene cracker was estimated to be cut 20-30%, or about 15,000 tonnes loss of olefins per month, the source added. The loss volume of polymer output was not yet to known.
Yanshan produces 440,000 tonne/year of polypropylene (PP) and 520,000 tonne/year of polyethylene (PE).
Reduction of Yanshan’s 115,000 tonne/year PP unit has not influenced
However, the north
Sinopec’s other subsidiaries which include Shanghai Petrochemical, Yangzi Petrochemical, Qilu Petrochemical and Maoming Petrochemical are in talks with
the authority to cut production in December, sources close to the companies said.
“Maoming’s polymer output loss is estimated to be 11,000 tonnes in December,” a company source said.
“If these five big polymer producers cut output in December,
PP capacities of the five polymer producers totalled 1.74m tonnes/year or 30% of the country's total. As for PE, the total capacities of the five was 2.69m tonne/year or 38% of the country’s capacity, a Shanghai-based analyst said.
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