China’s PP, PE production loss hits 180,000 tonnes in August

20 July 2012 10:35  [Source: ICIS news]

SINGAPORE (ICIS)--China’s domestic polypropylene (PP) and polyethylene (PE) production loss in August is estimated to reach about 88,000 tonnes and 92,000 tonnes respectively because of maintenance shutdowns, industry sources said on Friday.  

Yangzi Petrochemical plans to shut for maintenance its 200,000 tonne/year low linear density PE (LLDPE) and its 400,000 tonne/year PP units in Nanjing in late July, a source close to the company said without giving any details on the restart.

Sinopec SABIC Tianjin Petrochemical will shut its 300,000 tonne/year high density (HDPE), 300,000 tonne/year LLDPE and 450,000 tonne/year PP units in Tianjin in mid-to-late August for 40 days of maintenance, said a source close to the company.

Tianjin Petrochemical’s 120,000 tonne/ year LLDPE unit and 60,000 tonne/ year PP unit in Tianjin will be shut in mid-August for 40-50 days of maintenance, said a source close to the company.

Panjin Ethylene, a subsidiary of Huajin Chemicals Group, will shut its three HDPE units with a combined capacity of 430,000 tonnes/year in Liaoning for a 20-30 day turnaround in early August, said a company source. The company will also shut its two PP units with capacities of 50,000 tonnes/year and 250,000 tonnes/year respectively at the same site at the same time, the source added.

Some suppliers in South Korea believe that China’s PP and PE import volumes will increase during July-August as demand decreases in other countries amid the European economic crisis and cargoes are diverted to China instead.  

Local traders said the turnarounds will not have a significant impact on the polyolefins market. Even if PP and PE prices rise amid the tighter supply, the price hike will not be sustained as end-users will not accept such high prices, they added.

Some traders said buying interest for PP and PE is weak because of smaller margins.

Domestic LLDPE prices were at yuan (CNY) 10,100-10,250/tonne ($1,586-1,609/tonne) EXWH (ex-warehouse) on 20 July, stable from 19 July, according to data from Chemease, an ICIS service in China.

Domestic PP yarn prices were at CNY10,700-11,200/tonne EXWH on 20 July, stable from 19 July, according to Chemease data.

($1 = CNY6.37)

Additional reporting by Angie Li, Lizzie Yu, Doreen Zhao, Rain Dong

By: Amy Yu

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