China’s polypropylene demand to shrink in H2 - Sinopec

16 July 2009 15:04  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s polypropylene (PP) demand will likely shrink in the second half of this year as companies conclude their restocking efforts and operating rates fall at plants in downstream sectors, a Sinopec official said on Thursday.

“I am not optimistic about the PP demand in the second half of this year, as restocking has almost completed in the first half of this year after a destocking in the fourth quarter of last year,” said Lu Shixin, a product manager with Sinopec’s chemical sales branch.

Lu was speaking on the sidelines of the 2009 Polypropylene Industry Chain Forum in Shanghai.

The operating rates of downstream plants had shown an obvious decline from May, he said, adding that he thought the positive impact on the industry from China’s macroeconomic stimulus package would weaken in the coming months.

China's new PP capacities in the second half of this year were expected to total 800,000 tonnes, mainly from Fujian Refining and Petrochemical (FREP), Dushanzi Petrochemical, Tianjin Petrochemical and Panjin Ethylene, according to Lu.

Zhenhai Refining & Chemical Co’s new 300,000 tonne/year PP plant in eastern Zhejiang province will start up in early 2010, he said.

“We will adjust our production sales strategy in time to cope with increasing new capacities,” Lu said.

Sinopec, Asia’s largest refiner, produced around 3.45m tonnes of PP in 2008, he said.

For more on polypropylene visit ICIS chemical intelligence
See John Richardson’s Asian Chemical Connections Blog
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By: Judith Wang
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