26 April 2011 07:30 [Source: ICIS news]
SHANGHAI (ICIS)--China’s Maoming Petrochemical plans to shut its 620,000 tonne/year No 2 cracker and two derivative plants at Maoming, Guangdong province, on 26 May for a 15-day turnaround, a source close to the company said on Tuesday.
However, the source could not confirm how long the two units will be taken off line.
Maoming will lose 10,000 tonnes of HDPE and 4,000 tonnes of PP in May as a result of the shutdown, he said.
Meanwhile, production at Maoming’s 220,000 tonne/year linear low-density PE (LLDPE) plant at the same site will continue in May, but at a reduced 70% rate, he said, adding that the loss of output is estimated at 5,000 tonnes.
The producer will continue to run its two low-density PE (LDPE) plants at the same site at 100% capacity as it is enjoying positive margins for this product, he added.
The two LDPE plants have a combined capacity of 370,000 tonnes/year, according to the source.
Maoming’s other facilities at the same site, including its 380,000 tonne/year No 1 cracker and 170,000 tonne/year PP plant, are not scheduled for production cuts or maintenance, he said.
The reduced HDPE supply from Maoming is likely to boost market sentiment, as its cuts in production are more than what market players expected, and supply is relatively tight in south China, a local trader said.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|