North China LLDPE supply to tighten from mid-May

05 May 2008 12:52  [Source: ICIS news]

SHANGHAI (ICIS news)--Domestic linear low density polyethylene (LLDPE) supply in north China is expected to tighten from mid-May until the end of June because of turnarounds at local majors and production switches, market players said on Monday.

 

LLDPE production is expected to drop around 48,000tonnes during this period, a trader in north China agreed.

 

Major LLDPE producer Jilin Petrochemical in Jilin Province, a subsidiary of PetroChina, plans to shut down its 275,000tonne/year LLDPE unit on 14 May for a month-long turnaround.

 

And Sinopec subsidiary Zhongyuan Petrochemical has a planned maintenance shutdown at its 200,000 tonne/year LLDPE plant starting on 1 June for 35 days.

 

While PetroChina’s Daqing Petrochemical switched its 85,000tonne/year LLDPE facility in Heilongjiang province on 1 May from LLDPE grade to metallocene grade for at least a month.

 

Meanwhile, Lanzhou Petrochemical’s 60,000tonne/year LLDPE unit will be producing high density PE (HDPE) injection grade during May so the company will only have its 300,000tonne/year LLDPE/HDPE swing plant in Gansu province producing LLDPE grade.

 

Another producer, PetroChina’s Dushangzi Petrochemical will use LLDPE produced from its 120,000tonne/year line for local supply in Xinjiang province.

 

“Domestic LLDPE prices are currently at CNY 13,900-14,100/tonne ($1,986-2,014/tonne) in north China, although local demand for mulch film has almost ended since the H2 (second half of) April. We’re still positive of LLDPE outlook in the coming week as we believe that the significant production losses could support LLDPE prices,” a trader said.

 

($1=CNY7.00)

By: Jade Xu
+65 6789 8828

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